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The affect of globalization on China - Literature review Example

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Globalization is an ongoing process of interaction whereby integrating the domestic economy, culture, technology, etc. into the worldwide scope through activities such as Foreign Direct Investment, Foreign trade. …
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The affect of globalization on China
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The affect of globalization on China

Download file to see previous pages... Globalization is a significant but not a new economic phenomenon. World Bank throws out that there were three main globalization waves since 1870 where the global economy, capital flow and migration have been increasing dramatically. China is the fastest growing country among all the developing countries and dominates an important role in the most recent globalization wave. From the figure 1, we can see that the GDP of China has been significantly increasing to an unprecedented rate and the rate has maintained 12% growth annually in the global economic integration decade. The rapid economic growth in China captures the world’s attention especially after the economic reform and openness policy in 1978 as the Trade, exports and imports have enormously gone up (Refer to Figure 2). Perhaps like other developing countries, China has been experiencing an increase in economic inequality accompany with the global economic integration. As shown in figure 3, the Gini coefficient from 1978-2008 presents that the inequality within the country has been highly raised. Growing on the intra-country inequality not only affect the stability of the country, but also hamper the potential economy growth. Moreover, the inequality problem is quite complicated in China as the wage inequality, uneven income distribution and regional disparity are all needed to take into account when we concern about the economic inequality of a country. The following chapter will briefly review the current literature to see what scholars have discovered on this topic and how they argue about the story. In chapter 3, the empirical model will be constructed and displays the details of data resource, data description and OLS assumptions. Chapter 4 will access the tests for the model to check its validity, and then find out the relationship between the four independent variables and the dependent variable. Critical analysis about the globalization impact on the inequality in China will also applied in Chapter 4. The conclusion will be drawn in Chapter 5 to summarize what evidences have been found from ...Download file to see next pagesRead More
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