The Analysis Of Impact Of Foreign Trade On The Income Gaps Between Urban And Rural Of China

After 30 years of reform and opening up, the scope and depth of China’s opening to the outside constantly are widen and deepen with the development of foreign trade making great achievements. However, China’s income gap is gradually increasing. The economic develops rapidly and at the same time, the increasing of the income gap is becoming more and more obvious. The situation is very serious. In our country, the urban-rural income gap is particularly evident. The average per capita disposable income of urban households between households and rural residents’per capita net income gap continues to expand.The earliest systematic study of international trade and the income gap between the theories of factor endowments was the Huckster- Ohlin theory.Huckster and Ohlin put forward this theory, and it also known as H-O theory. Samuelson and Stoll Pa together put forward Stoll Pa- Samuelson theorem on the basis of this theory. The effects of foreign trade affects income gap between urban and rural areas in our country are "urbanization mechanism, industrial adjustment mechanism, technology progress mechanism and policy mechanism. Foreign trade can promote the development of urbanization; the urbanization impact on urban-rural income gap in multiple levels. On the one hand, urbanization improves the income level of rural residents, so it may narrow the income gap between urban and rural areas in china. On the other hand, the urbanization may cause a part of the rich peasants directly turn to urban residents and the income gap between urban and rural areas of china increases. The industrial structure of international trade country will be subject to foreign trade. Then it changes the labor income of different industries, and the impact of the social income gap. In our country, especially the rapid development of the third industry affects the income gap between urban and rural areas significantly. The foreign trade affects the technology progress. At the same time, the introduction of advanced technology will affect the employment, income distribution and other aspects of the society to the country. Similarly, international trade policy will change according to the foreign trade, and this change may also affect the change of the income gap.Empirical Analysis based on both the time series data used in the national and provincial panel data of trade and income gap between urban and rural in China shows that whether trade amount or trade dependence, foreign trade and import trade of goods and export of service trade and China’s income gap has a significant positive correlation. This shows that the development of foreign trade in China has different effects on urban and rural residents. There is a significant positive correlation between import goods and the urban-rural income gap, but it is not significantly between the export trade of goods and the income gap between urban and rural in china. Further subdivision, there was a significant positive correlation between the import of primary products, industrial manufactured goods imports and exports of manufactured goods and China’s income gap between urban and rural areas, and there is a significant negative correlation between the export of primary products and the income gap between urban and rural areas in china. For the eastern region, trade of import and export goods and the income gap between urban and rural areas have significant positive correlation, while the central and western regions, the effect of trade in goods import and export on the income gap between urban and rural areas is not significant.