International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Study on Influence of Trade Openness and Capital Flows on China’s Labor Share Empirical Analysis based on Data from 1992 to 2012
Min-Yang Tao, Ph.D.; Bo Wang, Ph.D.

After the reform and opening up, China gradually gets involved in the tide of global economy. International economic relation is increasingly close. Opening degree deepens constantly, but the proportion of China's labor income declines. Labor share changes will affect investment and consumption, thus affecting economic growth. The present China's economic growth rate slows down, and the economic structure is in transition period. Under the new normal condition, to explore the changes of labor income share itself, and the influence mechanism of economic globalization on the labor share have important practical significance. This article spreads out mainly from two aspects of trade openness and capital flows, makes a comprehensive survey of regional difference, the influence of the landmark event, and explains the possible influence path and influence way of economic globalization on China’s labor share.

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