The Influence Of Export-Oriented Economy On Urban-Rural Income Gap In China

30 years of reform and opening up, the export-oriented economy in China has obtained much development, which plays an important role in economic growth in China. Chinese economy has shown a trend of rapid development, but at the same time, the income gap in China is becoming more and more prominent. Income gap between urban and rural areas too large is not conducive to the sustained and healthy development of nati onal economy, would threaten the stable operation of our economy and society. Therefore, changing the development mode of export-oriented economy and speeding up the income distribution reform is particularly necessary.This paper will analyze the impact of export-oriented economy on urban-rural income gap in China from theory and empiric two aspects. The theoretical analysis shows that FDI is mainly through channels such as industrial structure, employment structure, location choice, the total factor productivity influent urban and rural income distribution; international trade is mainly through factor prices mechanism, industrial structure, employment structure, total factor productivity and other channels impact urban and rural income gap. The empirical results have three points: first, whether from the national or from the regional perspective, there is obvious spatial dependence in income gap bet ween urban and rural areas; second, at the national level, foreign direct investment and international trade can narrow the urban-rural income gap; third, from the sub regional perspective, FDI and international trade will widen the income gap between urban and rural areas in the East. FDI and international trade helps to narrow the income gap between urban and rural areas in the West. In the central FDI has no significant effect on the urban-rural income gap, but international trade will narrow the urban-rural income gap. After that, according to the analysis, we put forward policy suggestions on how to improve the efficiency and transform the development model of export-oriented economy to narrow the income gap between urban and rural areas in China.