The globalization of trade is a phenomenon that should, on the surface, impact communities in predictable ways. My research will investigate the pattern of “winners” and “losers” from globalization in China with two aims. First, I will test which model of trade policy-making fits best in China. Given that unskilled labor, China’s most abundant factor, tends to be relatively mobile, there is reason to expect the Heckscher-Ohlin theory and Stopler-Samuelson theorem (HOS model) will be most appropriate. Second, to the extent that observed rates of return do not fit either model, we can assume that government intervention has offset the effects of globalization, with the government or state-owned enterprises perhaps subsidizing scarce factors of production or comparatively disadvantaged sectors. Examining the pattern of protection and subsidies in China will shed important light on the politics of globalization in a rapidly developing and authoritarian economy. I will delve into the works of various scholars including Xiaojun Li and Ka Zeng’s work to potentially find other causal connections.
