Openning Up, Technology Development And Income Inequality: Based On The Analysis Of A Panal Of 11 Provinces In Eastern Part Of China.

Since reform and opening up,China is more and more integrating into the world economy,becoming a indispensable part of the global economy.Beside the positive contribution to the development of china's economic and international economy,it also brings some negative impacts.One of the widely concerned problem is the income gap effect within a country,which is a hot issue to a growing number schlors.The classic theory of H-0 and S-S gives a interpretation to the impact of foreign economy to income distribution.And also some researchers give other theories and empirical analysis.In this paper, we use a panel of 11 provinces in eastern part of China for the period 1986 to 2008 to analyze the impact of foreign economy on the income distribution of urban residents. The results show foreign dependence degree has a positive impact on income inequality,which illustrate that the growth of import and export will aggravate the gap of income.Also export dependence degree can explain more then import dependence degree.We also give a regression to total trade and net export and have the same results.And then FDI has a significant non-linear relationship with regional income inequality,a inverted U-trend that with the increase of FDI stock, regional income gap first increased and then decreased.The article also shows that regional development and openness significantly increase the income inequality, while inflation reduces wage inequality of residents in eastern China.The empirical results show that higher level of education can enhance to accelerate technological diffusion of FDI, then increase workers' ability to adapt new technology, which can reduces income inequality.However,education itself exacerbates regional income inequality in China caused by unfairness and inequality of education.