Research On The Impact Of Foreign Trade,Urbanization On Urban-rural Income Gap Under The Spatial Perspective

According to the theoretical essence which the new economic geography(spatial economics)explores economic agglomeration,this paper researches the effects of the foreign trade,urbanization that are related to industry and factor agglomeration in the new economic geography settings and analyzes the direct effects and spatial spillover effects of individual factors and interactions on the urban-rural income gap.In Particular,at first,the article find a breakthrough in research and innovation by reading the articles about foreign trade,urbanization and urban-rural income gap.Then analyzed the influence of foreign trade and urbanization on the income gap between urban and rural areas by sorting out the theoretical approach of the related basic theory and clarified the relevant mechanism.At last,we use the spatial measurement method selecting the panel data of 30 province in China during 2002-2015 to confirm the impact of the relevant theoretical mechanisms.Finally,we understood the Impact of trade and urbanization on urban-rural income gap from two aspects of theoretical and empirical.It proved that,(1)"Distance" has an impact on the income gap between urban and rural areas in China.There is a strong spatial correlation in provinces of geographical proximity and provinces with similar economic levels.This shows that the income level of urban and rural areas in a region is affected not only by the economic factors in the region but also by the regions of approaching and provinces with similar economic levels,that is to say,it has the impact of "demonstration effect." This is the result of the combined effect of relevant economic and political factors in a region and also with the uneven development of the whole country.(2)Foreign trade can narrow the income gap significantly.Trade will narrow the income gap through the power of agglomeration under the combined influence of the related effects,market demand,transportation and production costs,as well as the centripetal effort such as knowledge spillover,rising labor costs,urban traffic congestion,environmental pollution and rising house prices.lt also shows a significant spillover effect.That is,the development of foreign trade in other regions can also reduce the income gap between urban and rural areas in the region and is greatly affected by the geographical distance.(3)Urbanization has a direct inhibitory effect on the expansion of income gap,but only the spatial spillover effect is significant.lt indicated that the effect of urbanization is related with the economic development.Provinces with similar economic levels have a strong demonstration effect;(4)The interaction between foreign trade and urbanization will narrow the income gap between urban and rural areas,and the interaction mechanism between the two has a negative spatial spillover effect.In comparison,the effect of the two has multiply effect,the effect of interaction is significantly higher than the effect of single factor,and the effect of spillover effect is better than the direct effect;(5)Industrial structure,level of financial development and policy elements have a significant direct and spillover impact on the income gap.