The Impact Of China’s Opening On The Income Gap Between Urban And Rural Areas From The Perspective Of Urban And Rural Integration

China has more than 30 years of reform and opening-up, international trade and FDI inflows contributed to the growth of the economy. But the problem of inequality of income distribution in our country is becoming more and more serious, especially the income gap between urban and rural areas. So it is necessary to deal with the problem of urban and rural integration on the basis of our country opening to the outside world and the relationship between the income gap between urban and rural areas were studied.First of all, this paper review and summarize the related literature and theory systematically, and presents a more comprehensive theoretical framework.The Second, this paper introduces the process of our opening and the evolution of the income gap between urban and rural areas in China, both of the characteristics and correlation analysis, which is described using data.The Third, using the relevant data, building a model including foreign trade openness, foreign direct investment openness and urban and rural income. Variable passed the ADF unit root test, proving that smooth series; With the Johansen cointegration relationship test, and points out that the short- and long-term co-integration relationship between variables. On this basis, the three variables for Granger causality test, according to the results of the inspection to take a test variable between short- and long-term effects.The Fourth, according to the test results the following conclusions: Firstly, the FDI inflows in the short and long term are all the reason of income gap between urban and rural areas, and are positively correlated, the FDI inflows expanded the income gap between urban and rural areas in China. Secondly, China’s foreign trade and negatively correlated with the income gap between urban and rural areas in the short term, long term were positively correlated.Finally, the article will proposed for narrowing the income gap between urban and rural areas, the coordination of urban and rural development policy recommendations. It would promote the reasonable utilization of foreign capital in our country, narrow the gap between urban and rural, to ensure the sustainable economic development has positive practical significance.