The Impact Of Foreign Direct Invest On The Chinese Income

In recent years, foreign direct investment is growing rapidly worldwide. Foreigndirect investment, driven by the company cross-border mergers and acquisitionswave. China, the industry in attracting foreign direct investment (FDI) has madeconsiderable achievements. While the influx of foreign direct investment, China’s percapita gross national income levels began to significantly enhance our revenuestructure also changes. This performance is high, the increasing number oflow-income populations, the income gap widening trend, China’s Gini coefficient isrising year by year, it seems there is no downward trend. Chinese Academy of SocialSciences published in2012,"Social Blue Book" and the "social situation": the trendof widening income gap in China has not yet been reversed. Is not difficult to seefrom the above, China’s stable economic development and continuous improvementof living standards today, on the one hand, foreign direct investment in the continuousinflux of China, its scale of investment continues to expand, continue to broaden thearea of investment, on the other hand, China’s income level increase while the incomestructure also will change, the income gap is widening. It is necessary to study theimpact of foreign direct investment in China’s income. In addition, in the process ofeconomic globalization, the world’s economic ties continue to strengthen each other isincreasingly influenced mainly to multinational investment is widespread throughoutthe world. Therefore, the relationship between foreign direct investment (FDI) andthe income gap has also become the concern of international economists and laboreconomists, especially in recent years, many developing countries, the wave ofanti-globalization growing, relevant research findings have also been national Thegovernment attaches great importance.China’s foreign investment and the review of the history of the income level,current situation analysis, carried out for the relationship between Foreign Investmentand income from both theoretical and empirical research. Firstly, through literaturereview and current status of China’s foreign investment and income levels to findresearch a breakthrough on this issue discusses. Secondly, theoretical models wereinvestigated the impact of foreign direct investment on the Chinese income levels and income structure, and on this basis, the empirical analysis. Using panel data, theobservations are more abundant, expanding the sample size is more conducive toquantitative analysis. Processing panel data, using a more advanced unit root tests andcointegration relationship test methods. In the estimation of the model, in addition tothe basic OLS estimation, using state-of-the-art GMM dynamic estimation to reflectthe dynamic effects of the model. Finally, a combination of theoretical and empiricalresearch, for foreign direct investment in Chinese residents’ income levels and incomestructure for a deeper extension and discussed, and relevant policy recommendations.This work is the meaning of the Foreign Direct Investment and Income in China,respectively, starting from the two aspects of foreign investment on income level andincome structure, a more systematic, comprehensive study. This article made a lot ofwork in data processing, and more cutting-edge model esti mation method used in theempirical analysis. I hope this paper in this field of research to advance our researchon the relationship between Foreign Investment and income. Research results toprovide technical support to develop the policy of our government to attract foreigncapital and income distribution policy, with a strong practical significance.