Empirical Study on Intra-Industry Trade and Domestic Income Gap

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A large number of empirical studies show that, trade will have an impact on the domestic income gap. In turn, the gap will affect the intra industry trade This is a problem worth thinking and research.The optimization of the trade structure has important practical significance on promotion of foreign trade competitiveness in china. In view of our city typical characteristics of rural economic structure, and since twentieth Century 90 years, expanding speed of urban income gap degree has been more than rural areas, coupled with the proportion of the increasing urban population, the importance of the income gap between urban internal, become the structural factors of widening the income gap, this paper focuses on effects of urban income gap on intra industry trade. This article empirically tests the impact of Chinese urban income gap on the industrial finished product intra-industry trade level base on Johansen Co-integration Test, finding that the urban income gap improves the industrial finished product intra-industry trade level in the long term.

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5194-5198

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November 2014

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© 2014 Trans Tech Publications Ltd. All Rights Reserved

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