A Study Of Foreign Trade's Impact On Income Gap Between Urban And Rural Residents In Guangdong Province

The foreign trade of China has made a considerable progress and the total amount of foreign trade has been increasing year after year since the reform and opening up.As the forward position of reform and opening up in China,Guangdong province has always been ranking first in the development of foreign trade,which has made a great contribution to the economic development of Guangdong.At the same time,the income gap between urban and rural areas in Guangdong is also expanding.Domestic and foreign scholars have conducted many researches on the influence that foreign trade made on income distribution.Some scholars thought that foreign trade has expanded the income gap between urban and rural areas,others believed foreign trade has narrowed income gap between urban and rural areas.However,a conclusion can be drawn: foreign trade has a very important impact on the income gap between urban and rural areas.Most scholars have chose the whole country to conduct their researches,but the status of foreign trade and income distribution in one province differs from another in the whole country,and the difference between individuals tend to be covered when the whole country was chosen to be the object of research.Therefore,studying the impact that foreign trade make on the income gap between urban and rural areas has a great significance on narrowing the income gap between urban and rural areas,making the benefits of reform and opening up benefit the urban and rural residents equal.In this paper,many domestic and foreign literatures concerning the influence that foreign trade make on income distribution have been reviewed and a simple comment was following.Then,some relevant theories and transmission mechanism have been elaborated,which was the theoretical basis of the paper.Then,the status of foreign trade and income gap between urban and rural areas in Guangdong has been analyzed,and on this basis,theoretical analysis and empirical analysis have been used to studythe impact that foreign trade make on the income gap between urban and rural areas in Guangdong province,the sample data was selected from 1979 to 2014.The result shows that the development of foreign trade has expanded the income gap between urban and rural areas in Guangdong since reform and opening up,and the ratio of urban and rural residents' income will rise 0.174 percent when the foreign-trade dependence increase one percent.Finally,we combined the status of Guangdong to give some relevant suggestions about narrowing the income gap between urban and rural areas when developing the foreign trade in Gungdong.