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Research On The Impact Of FDI On The Income Gap Between Urban And Rural Residents In China

Posted on:2020-08-16Degree:MasterType:Thesis
Country:ChinaCandidate:S LvFull Text:PDF
GTID:2439330596980662Subject:Industrial Economics
Abstract/Summary:PDF Full Text Request
Since the reform and opening up,with the deepening of economic globalization,China has opened the door to trade and developed along with the world economy.China has actively introduced foreign investment to boost its economic development,the amount of foreign direct investment increased from $1.4 billion in 1984 to $311 billion in 2017.In the process of development,foreign direct investment as an indispensable important capital for China's economic development,its positive impact can not be ignored.It has significantly improved the overall income level of Chinese residents and played a very strong supporting role in the rise of China.However,as China attracts foreign direct investment,the impact on the income gap between urban and rural residents in China is gradually emerging.The establishment and development of a harmonious society cannot be separated from the joint construction of urban and rural residents.In the process of achieving this goal,the most crucial thing is to maintain the sustainable development of China's economy,the steady increase of national income,and the narrowing of the income gap between urban and rural residents,so that Chinese society will form a benign economic development path.In the previous studies,there was no unified conclusion on the mechanism and impact of foreign direct investment on the income distribution of urban and rural residents,and the research focus was also different.This paper further studies the impact of foreign direct investment and industrial structure upgrading on the income gap between urban and rural residents in China,and guides China to attract more foreign investment and more efficient use of foreign capital,thus narrowing the income gap between urban and rural residents.This paper first reviews the relevant literature on FDI and income distribution,and clarifies the existing research results.At present,there are different research conclusions and methods on the impact of FDI on ome distribution.The research results are divided into three categories: FDI expands the urban-rural income gap;FDI reduces the urban-rural income gap;and FDI has an inverted u-shaped structure with respect to the urban-rural income gap.Then,relevant theories and mechanisms of FDI and ome distribution at home and abroad are analyzed to guide the model construction and empirical analysis in the following part.Then,it analyzes the current situation of FDI,industrial structure upgrading and urban-rural income gap in China in detail.In the empirical analysis,this paper studies the impact of FDI and industrial structure upgrading on urban-rural income gap from the perspective of industrial structure upgrading.ADF test and co-integration test were conducted,model estimation was conducted by differential GMM,and sample estimation and test were conducted to divide China into three regions,namely east,central and west,to further explore the impact of FDI on the income gap between urban and rural residents.The main conclusions of this paper are as follows: first,both FDI and industrial structure upgrading can narrow the gap between urban and rural incomes in China;Secondly,through the transmission mechanism of industrial structure upgrading,FDI fails to effectively restrain the widening of the income gap between urban and rural residents,which is not conducive to the narrowing of the income gap between urban and rural residents.Third,the level of economic development,the degree of opening-up,the rate of urbanization and the degree of government intervention are all conducive to narrowing the income gap between urban and rural areas.Fourth,there is heterogeneity in the impact of FDI on the urban-rural income gap.Due to the early utilization of foreign capital and the high level of economic development in eastern China,FDI is now more concentrated in the tertiary industry,and the rease of FDI actually widens the urban-rural income gap,which is different from the results at the national level.Finally,the paper puts forward some policy Suggestions,such as attracting foreign investment flexibly,optimizing the structure of foreign investment,optimizing and upgrading industrial structure and improving the system.
Keywords/Search Tags:FDI, Upgrading of industrial structure, Income gap between urban and rural residents, The level of economic development
PDF Full Text Request
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