Impact Of China's Foreign Trade On Urban-rural Household Income Gap

With the development of China's export-oriented economy,foreign trade has been developing rapidly,our trade dependency reached 65.2% in 2006.At the same time,the income gap between urban and rural areas showed a trend of extending,it achieved the ratio of 3.03 in 2013.This paper is mean to stuy whether exists a certain relation between foreign trade and urban-rural household income gap,the former whether effects the the latter directly or by some indirect way,it is necessary to make these problems clear.In the aspect of theory,this paper introduces the theory of traditional foreign trade impact on the income gap;Secondly it expounds the mechanism of foreign trade impact on urban-rural household income gap,this paper discusses four possible ways to illustrate foreign trade how to influence urban-rural household income gap,they are the factors of price,technology progress,labor market and policy formation.Factors that affect the income gap mainly includes the factors that affect income growth,the impact of income distribution policy bias,economic development level,etc.,on this basis,the research hypotheses are put forward.As the empirical study part.,this article will use the relevant data from 1999 to 2013 of China,make a empirical study about the influence of the foreign trade on income gap between urban and rural areas.To research the influence of the former on the latter deeper and more specific,this article will divide our country into three regions,namely the eastern region,the central region and the west region,to inspect the influence of foreign trade on income gap between urban and rural areas of the whole country and three regions;In addition,this paper will divide foreign trade into import trade and export trade,to analysis the influence of different trade direction on urban-rural household income gap of the whole country and three regions.This article concluded that the development of foreign trade indeed plays an important role for the expansion of urban and rural income gap,but we can not deny foreign trade for this reason,not metion to refuse developing foreign trade.We should give full play to the foreign trade to promote economic development,improve the residents' income,at the same time,to adjust the trade structure,strengthen the agricultural use of foreign capital,establish a unified,perfect factor market,play a role of the government's policy coordination and other measures to narrow the income gap between urban and rural areas.