An Empirical Analysis On The Impact Of China’s Service FDI On Urban-rural Income Gap

Along with our country socialist market economy has a great development. Theservice industry of our country has gradually become the mainstream industry leadingeconomic development. At the same time, the material life of the residents of our countryhas been increasing. Due to the impact of the industry and regional factors, urban andrural income problem has become more obvious. In the price level rising at the same time,the CPI coefficient of China has increased obviously. Real income is negative growth ofresidents in China trend. Presents a serious challenge to the sustainable development ofthe social stability and the national economy of China.Be in service industry of our country under the premise of the mainstream.serviceFDI inflow has what influence in front of economy, especially the income gap of urbanand rural residents in China have what effect. These two problems have become the focusof attention of the society. How to introduce foreign investment, make up China’smodernization construction funding gap, but also can narrow the income gap betweenurban and rural residents in China is very good. This is not only the fundamental problemof the people’s livelihood, but also stability and unity, and provide important support forthe economic development of our country. In order to interact better research service ofFDI and China’s income gap between urban and rural residents. This paper will analyzefrom five aspects of the problem.The first part of this paper is introduction, this part mainly studies the FDI in serviceindustry and the income gap between urban and rural residents has done a review. To setthe tone for the whole article.The second part of this paper is the transmission mechanism between the serviceindustry of our country FDI and the income gap between urban and rural residents, thispart of the inflow of FDI in service industry impact on what aspects, the level ofindustrialization is determined, the level of employment and services import and exportlevel of three main factors. And the influence factors about the impact on the income gapbetween urban and rural residents in China. So as to determine the conductionmechanism of FDI in service industry and China’s income gap between urban and rural residents.The third part of this paper is the general situation of FDI in service industry andChina’s income gap between urban and rural residents, the main part of the overallsituation in our country at present the service FDI to discuss. But also summarizes thebasic situation of the income of urban and rural residents in China at present. Therespective characteristics, give proof for the relationship between the two.The fourth part of this paper is the empirical analysis, based on the income gapbetween urban and rural areas as explained variable, selects the service FDI quota,service industry import and export quota, the level of employment and the level ofindustrialization as the explanatory variable. Through the establishment of regressionmodel. The mutual influence between the various variables.The fifth part of this paper is proposed, combining empirical analysis and the fourthpart of the analysis results. Put forward in line with China’s basic national conditions andpolicy recommendations.