Study On Income Gap Between Urban And Rural Residents From Fdi In Anhui

Income gap between urban and rural areas has been the government officials, experts and scholars as well as the social common concern of the people’s livelihood of the masses. In the1970s after implementing the policy of reform and opening in China, FDI has become an important factor in the rapid development of economy in our country.Anhui province as one of the important provinces of central undertaking industrial transfer policy.As the first11months of2012, Anhui province actual utilized foreign direct investment amount reached8.01billion dollars, up28.8%from a year earlier. Foreign direct investment through its transmission mechanisms influence the income gap between urban and rural areas in anhui province. In this paper, on the basis of full consideration of anhui province-circumstance, the problem of foreign direct investment (fdi) affects income gap between urban and rural areas in anhui province are analyzed.This article first to the domestic and foreign scholars on FDI affect the host country of the income distribution theory is summarized, On this basis, from regional selection, the industrial structure, foreign trade, technology spillover effect, and preferential treatment to five aspects of FDI on the conduction mechanism of the income gap between urban and rural areas for further analysis. Then use econometric model of FDI effect on the income gap between urban and rural areas in anhui province empirical analysis, the conclusion is that, Foreign direct investment is the important factors that affect the income gap between urban and rural areas in anhui province changes, and foreign direct investment inflows to further increase the widening income gap between urban and rural areas in anhui province. According to the result of empirical analysis in the end, this article puts forward the advice on how to more rational use of foreign direct investment, foreign direct investment to play the positive role of influence on income distribution between urban and rural areas in anhui province.