The Impact Of Foreign Direct Investment On The Income Gap Between Urban Ancd Rural Residents

Since the reform and opening up,China has been making great efforts to attract foreign investment to develop the economy.In 1984,China's foreign direct investment 1 billion 400 million U.S.dollars,and in 2015,China's foreign direct investment reached $126.27 billion2,with an average annual growth rate of 15.6%.In the past 20 years,foreign direct investment(FDI)affects the distribution of interests between countries,but also has a negligible impact on the income distribution of the residents of a country.An important goal of building a harmonious society is to improve the overall income of the residents to keep at the same time,efforts to narrow between urban and rural areas and between regions,the income gap between residents,so as to achieve common prosperity.In our country,that foreign direct investment plays a positive role in the economic development of our country,in-depth analysis of the impact of FDI on the income gap between urban and rural residents of our country,our country can make better use of foreign capital,the income gap between urban and rural ease.This paper firstly analyses the income gap between urban and rural areas according to the actual needs of the descriptive,selected "the income of urban and rural residents" to measure China's income gap between urban and rural areas,the income gap between urban and rural areas in our country at the present stage in detail,and do some sort of sound mechanism of income gap between urban and rural China's foreign how to invest,that FDI mainly through the labor mobility between urban and rural areas and technology spillover factors such as urban-rural income gap.On this basis,we establish an empirical analysis on the income gap between urban and rural model,investigated the relationship between FDI and China's income gap between urban and rural areas from the perspective of econometrics,and presents some relevant suggestions according to the empirical results reflect the problems.This paper mainly discusses the relationship between foreign direct investment and the income gap between urban and rural areas.In theory,China's FDI is mainly invested in cities and towns(Lu Ming,Chen Zhao,2004).In the early days of FDI inflows,FDI technology makes the domestic enterprise productivity has been greatly improved,the economic effect is obvious,the rising income gap between urban and rural areas;with the economic effects of the gap,a large number of rural workers into the cities and towns,towns share the economic benefits,the urban-rural income gap narrowed,in addition,the benefits of technology spillover,making rural the mode of production and the production efficiency has been improved,declining income gap between urban and rural areas.As a result,FDI presents an inverted U shaped structure of urban-rural income gap".In the empirical analysis,based on the 1999-2013,Hong Kong and Tibet due to serious lack of data,this paper selects China's other 30 provinces3(municipalities and autonomous regions)of the income gap between urban and rural areas,foreign direct investment,industrial structure,urbanization and other data,the difference between urban and rural income from foreign direct investment and there the "inverted U",will be the country's 30 provinces are divided into the eastern and western regions,the eastern Midwest,the income gap between urban and rural and foreign direct investment "inverted U" structure.Eastern and central in the inverted U shape on the right side,the urban-rural income gap with the growth of FDI showed a downward trend,while the West in the inverted U shape on the left,the urban-rural income gap with the growth of FDI showed an upward trend.East and west "inverted U shape" openings,that is,the impact of FDI on the urban-rural income gap between the East and the west,the central "inverted U shaped" small openings,that is,the greater the impact.