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This paper discusses the influence of trade on labor dispute and its mechanism of action by introducing the inter-provincial panel data. The research result demonstrates that foreign trade can provoke the labor dispute to an extent where such labor dispute remains explicit. Further research shows the union plays a considerable role in the interaction between labor and capital. Keywords—foreign trade; labor dispute; union; instrumental variable GMM

Research on the Factors Influencing Labor Dispute and its Mechanism of Action in an Open Condition