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The influence of international trade on income distribution.
Since Adam Smith's theory of international trade, economists have begun to study the income distribution among China countries in international trade. With the development of economy and society, the theoretical exploration in this field is also deepening. At present, trade liberalization and its impact on social inequality and income distribution have aroused widespread concern among economists. First, the meaning of trade liberalization From the existing research literature, the meaning of trade liberalization is linked with the description of the characteristics of liberalization. The representative views are as follows: 1. Trade liberalization refers to complete free trade. The performance is to greatly reduce tariff and non-tariff barriers and cancel all government intervention in trade activities. This is an extreme view. In fact, up to now, no country or region has implemented complete free trade, and governments' intervention in trade activities has never stopped. 2. Trade liberalization is the neutrality of a country's trade system. Neutralization means that the government distributes incentives equally in the import and export sectors and reduces anti-export bias in the trading system. Bhagwati believes that neutralization is the core of trade liberalization. 3. The characteristic of trade liberalization is openness. Kruger believes that there are a lot of quantitative restrictions such as quotas and licenses in the trade system of developing countries, and reducing quantitative restrictions is the basic feature of the transition to a free trade system. As governments in various countries generally adopt a laissez-faire attitude towards export trade, trade liberalization mainly refers to import liberalization. From the point of view of theory and practice, trade liberalization is generally regarded as a dynamic process, that is, a government gradually removes trade and non-trade barriers, reduces direct government intervention in trade activities, gradually expands the degree of openness, and changes from a protected trade system to a free trade system according to its own economic and social conditions. Second, the model analysis of trade affecting income distribution 1. Adam Smith's trade theory. Adam Smith, the father of economics, first put forward the theory of free trade. He believes that a country has an absolute advantage because of its high production efficiency in a certain industry, so it should specialize in producing its own products with absolute advantages and trade with products with absolute advantages in other countries through international division of labor. In this way, both sides can gain trade benefits through free trade. This is Smith's theory of absolute advantage. 2. David Ricardo's comparative trade theory. Ricardo believes that international division of labor and free trade should be carried out according to the relative gap of production costs, which is beneficial to both division of labor and exchange. Even if a country can't produce absolutely low-cost goods, as long as it can produce relatively low-cost goods, it can trade with another country and both sides will benefit. Ricardo's comparative advantage trade theory is the cornerstone of free trade theory and lays a solid foundation for advocating free trade policy. 3. Hexcher-Olin model. This model is called H-O model, which clearly expresses the relationship among trade, quantity of factors and price. Suppose there are two countries (country A and country B), country A is rich in labor and country B is rich in capital. The two countries produce two kinds of products (X and Y) respectively, in which X is labor-intensive and Y is capital-intensive, and both labor and capital are used in the production process. Through model analysis, it is concluded that a country should export its relatively abundant and cheap factor-intensive products and import its relatively scarce and expensive factor-intensive products. In other words, country A, which is relatively rich in labor factors, should export labor-intensive product X and import capital-intensive product Y. Correspondingly, country B should export capital-intensive product Y and import labor-intensive product X.4.. Stolpa-samuelson theorem. Stolpa and Samuelson were the first economists who directly linked the relationship between international trade and domestic income distribution for independent research. In 194 1, they put forward the Stolper-Samuelson theorem (SS theorem) based on the H-O model. SS theorem proves that when a country implements free trade, the real income with abundant factors of production will increase and the real income with scarce factors of production will decrease. In the process of further studying H-O theory in 1948, Samuelson came to a new proposition: under the condition that all factors of production can flow freely for a long time, free trade will equalize the prices of goods and factors of production (that is, factor equalization theorem, FPE). If trade is conducted between developed and developing countries, free trade may reduce the wages of unskilled workers in developed countries, and a considerable number of unskilled workers may lose their jobs; The wages of unskilled workers in developing countries may rise and their living conditions may be improved. Since SS theorem and FPE theorem were put forward, economists have done a lot of research on the relationship between trade and domestic income distribution.

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