The Impact of Outsourcing and International Fragmentation on Trade Transmission and Wage Inequality

博士 === 國立政治大學 === 經濟研究所 === 97 === This thesis contents three approximate subjects for discussion. First of all, we confer the interaction of trades when the rise of international raw material price influences multinational; according to the data taken from many years, we employed the model of the f...

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Bibliographic Details
Main Authors: Lin, Jin-Xu, 林晉勗
Other Authors: Lin, Shih-Mo
Format: Others
Language:zh-TW
Published: 2009
Online Access:http://ndltd.ncl.edu.tw/handle/85640997671313593197
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Summary:博士 === 國立政治大學 === 經濟研究所 === 97 === This thesis contents three approximate subjects for discussion. First of all, we confer the interaction of trades when the rise of international raw material price influences multinational; according to the data taken from many years, we employed the model of the first subject to analyze the development of inter-regional impact, its effect and also the relationship between the development and the trade tendency. Lastly, the influence of outsourcing towards the labor market in the economy will be discussed, in order to search for the reason, which is responsible for the chronicle decrease of wage inequality. The result of the first discussion shows us, to slow down the price impact which is caused by the rise of the raw material, we can undertake national companies with high energy consumption industries (e.g. petrochemical industry); on these excuses: Technique shifting, international industrial cooperation or investment of researches and so on, the technology of high energy consuming industries could be promoted to improve the production structure. Further than that, dispersing import resources could efficiently reduce the price increase caused by import. The price control at public utility could bridle price rise effectively, when international energy price is arising. This is especially obvious in countries with lack of natural resource, not forget to mention the more nations introduce price control tactic, the better it is to reduce the price impact. By the analysis of the second discussion, it is said when each country in each industry at three different years experienced the same impact, the higher the industrial’s usage of energy and petro-products for intermediate inputs, the strong is the reaction of price impact and this influence mainly responded to the direct effect. If we examine the relationship between price impact and proportion of outsourcing, we could notice that the relationship is not very conspicuous in industrial level data. But if we move the analyze level higher to the whole nation, we could discover that the higher the percentage of outsourcing is, the lower is the resulted price impact. And this is because of the transmission effect of the international trade. Last but not least, the third discussion let us know, that in the past 25 years in Taiwan, the wage inequality of high skill and low skill labor was reducing chronically. Such a trend is clearly different from the result which is shown in the recently studies. Even the wage inequality is positive proportioned with the relative labor employed, but it has been negatively influenced by outsourcing and outward direct investments. The negative relationship counts to the most outstanding in electronics and electrical machinery industries, but civil industry and heavy metal industry is not much remarkable. This result is related to the expand model of Taiwan in the recent years. Although, the percentage of outsourcing grows day by day, but with the importance of Taiwan’s electronics industry, the production arises substantially annually, even though more and more of its components is sourcing from development countries, but we still need many non-skilled personnel to fabricate those in Taiwan. That’s why outsourcing will decrease the wage inequality. Further than that, the recent wage inequality decrease in Taiwan is mainly effected by the surplus of relative labor supply.