Research On The Influence Of FDI On The Industry Income Gap In Shanxi Province

The promoting of FDI on economic growth has been fully proved from theory and practice,and it's extensive,deep,complexity have been focused on by more and more researcher.The research on the influence of FDI on the income gap of the industry is also fruitful,but there are obvious differences in the research conclusions of different regions.Shanxi is the inland province,the study of FDI and how it affects its industry income is rare.This study is not only beneficial to the study of inland provinces,but also has reference value for the adjustment and optimization of FDI policies and economic and social development in Shanxi Province.Based on the analysis of the current situation of using FDI in Shanxi Province,this paper calculates the data of FDI stock in Shanxi Province by using the Perpetual Inventory Method,and classifies the industry in Shanxi Province as FDI intensive industry and non-FDI intensive industry.It is found that the income gap of FDI intensive industry has a great influence on the income gap of the whole industry in Shanxi Province.Further,through the transmission mechanism of FDI on the industry income gap,the technology spillover effect and wage spillover effect theory,with the Mincer model,considering factors such as capital,technology,institutional,per capita GDP of industry in Shanxi Province,to prove the influence of FDI on income gap.The total factor productivity instead of technical level innovatively,and the FDI and technology of cross terms,FDI and the cross terms of wages into the model,using fixed effect panel data regression method on the influencing factors of industry revenue gradually inspection,the results show that FDI industry in Shanxi Province and income have positive promotion effect,FDI every 1% increase,average income will increase by 0.3526%.Through the fixed effect variable coefficient model for further fitting analysis,found that the extent of FDI on high-income industry income increase is larger,and less increasing on the low-income sector,so as to make the trade gap has widened.The regression of cross terms also proves that the wage and technology spillover effect are important way to widen the income gap of FDI in Shanxi Province.Based on the above analysis,this paper argues that in the development of FDI in Shanxi Province in the future,not only need to further expand the scale of the use of FDI,increase the investment industry,at the same time to strengthen the FDI industry orientation and layout,improve the quality of using FDI,vocational skills training,and pay attention to labor stimulate vitality of market economy,to make FDI better promote the balanced development of industry of Shanxi Province income,better serve the economic development of Shanxi Province.