"Complete alternative" trade theory is challenged

According to the official website of the Massachusetts Institute of Technology on June 7, the school's professor of economics, Dave Donaldson, and Arnaud Costinot and others in cooperation. Early income inequality: exposure measurement and incidence estimation "found that international trade exacerbated Ecuador's income inequality.

The research focuses on the personal income level of Ecuador and the connection between national economic development and international trade. The results showed that wealthy people made more profits from international trade than middle -income classes. It can be said that this is the labor force and capital allocation structure effect of high -income groups. In addition, the middle -income class and low -income people have similar profits in trade.

Ecuador's trade structure has caused the above phenomenon. The country's main export goods and raw materials are more beneficial to the medium and below income classes, and import activities are usually more beneficial to the wealthy groups. In order to further understand the impact of international trade on Ecuador, researchers carefully analyzed trade -related economic activities. Data show that from 2009 to 2011, oil exports accounted for the largest proportion of the total exports of Ecuador (54%), followed by fruits (11%), seafood (10%) and flowers (4%). Ecuador's imported products are mainly made of finished products, including machinery (21%), chemicals (14%), and automobiles (13%).

The import and export structure of this "export junior product and imported finished products" determines the relationship between trade and Ecuador's income unequal to income. Employees with high education and higher wages have benefited more from trade, because these companies can purchase finished products and develop at a lower price. Costenot said, "Now, most of Ecuador's richest people are hired by companies that import a large number of products from abroad or buy a large number of products from other domestic companies. These companies have reduced their costs in this way and increased their employees of their companies. The value of service provides services, the income gap expands. "

The study found that it did not meet the expectations of the established trade theory to a certain extent. For example, some early theories predict that the opening of the trade door will help Ecuador's low -skilled workers employment. Compared with developed countries, Ecuador lacks technical workers. Therefore, Ecuador's participation in international trade will bring more benefits to low -skilled workers. However, from this study, this is not the case. In addition, some trade theory involves the concept of "complete alternative": When the mutual replacement of similar products produced by different countries through trade circulation, the salary level of these countries will tend to be consistent. The pay for workers should also be the same. However, the study showed that the interpretation of the "complete alternative" theory was insufficient. Donaldson and others said that although the trade model may gradually change, the data of Ecuador in 2009-2015 is very stable, reflecting the trend of people's unreasonable changes and income distribution.

Source: China Social Science Network-Journal of Social Sciences of China

Author: Li Ling/Compilation

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