Research On The Relationship Among Export, FDI And The Income Change Of The Urban And Rural Residents In Tianjin

The research on the urban and rural residents’income has become a hot topic in the academic world in recent years, but the existing studies mostly focus on the domestic factors, ignoring the foreign factors, such as the foreign trade and foreign direct investment (FDI). Along with the deepening of reform and opening-up and the establishment of Binhai new area, the export trade of Tianjin has made rapid development, while the scale of FDI is also expanding, export trade and FDI are so important to the economy of Tianjin that they will definitely affect urban and rural residents’ income levels, income gap and income structure. So, the study on the relationship among export, FDI and the income change of the urban and rural residents will provide a new way to increase income level, shorten income gap and optimize income structure, which has significant theoretical and practical value.First of all, based on the traditional theories of international trade and labor economics, this paper analyze the mechanisms which are used by export trade and FDI to cause the income change of urban and rural residents, the analysis shows that export trade causes the income change of urban and rural residents through commodity price mechanism, industrial structure mechanism, competitive power structure mechanism, technical progress mechanism and the government mechanism, while FDI adopts employment and industrial structure mechanism, technology spillover mechanism and preferential treatment mechanism. Then, this paper analyzes the export trade, FDI and the income of urban and rural residents in Tianjin from different points of view to realize the current situation and developmental characteristics. In addition, this paper conducts an empirical research on the relationship among the export trade, FDI and the income change of urban and rural residents in Tianjin, the results show that:the export trade and FDI can increase the urban and rural residents’ income level, but the effect of export is greater than FDI; export trade and FDI all can affect the income gap between urban and rural areas, export trade can narrow the urban-rural income gap in the short term, but in the long term it will expand the income gap, while FDI will enlarge the income gap no matter in short or long period, what’s more, the influence of export trade on urban-rural income gap is far less than FDI; export trade and FDI are both able to optimize the urban and rural residents’ income structure, but the impact of FDI is greater than export trade. Finally, according to the theoretical and empirical analysis, this paper puts forward some policy recommendations on how to increase the Tianjin urban and rural residents’income level, shorten the income gap and optimize the income structure.