The Influence Of Foreign Trade And FDI On Urban-rural Income GAP In The Yangtze River Economic Belt

More than 40 years since the beginning of reform,With the rapid development of China's economic aggregate,we have made remarkable achievements in the world.People's living standards are constantly improving.Along with the rapid economic development,there are also some problems.The expansion of the income gap between urban and rural areas is one of them.Therefore,scholars at home and abroad have done countless researches on the income gap between urban and rural areas.Most of the existing researches focus on the effect of single factor of foreign direct investment and foreign trade on the income gap between urban and rural areas Influence.The Yangtze River economic belt covers 11 provinces and cities,including Shanghai,Jiangsu,Zhejiang,Anhui,Jiangxi,Hubei,Hunan,Chongqing,Sichuan,Yunnan and Guizhou,covering an area of about 2052300 square kilometers,accounting for 21.4% of the country's total.Its population and GDP are more than 40% of the country's total.It straddles the three regions of East,West and East China,with unique advantages and huge development potential,attracting a large number of foreign investment and utilizing air navigation The total amount of foreign trade in terms of transportation and location advantages has risen sharply.This paper studies the impact of foreign trade and foreign direct investment on the income gap between urban and rural areas in nine provinces and two cities of the Yangtze River economic belt.First of all,through reading the relevant literature of urbanrural income gap,most of the studies are from Kuznets "inverted U" curve theory analysis,foreign trade and foreign direct investment on the impact of urban-rural income gap is significant,which is conducive to narrowing or expanding the urban-rural income gap.Secondly,it explains the impact of foreign trade and foreign direct investment on the income gap between urban and rural areas from the basic theory.Foreign trade affects the income gap through the industrial structure,factor price and technological progress mechanism.FDI affects the income gap through employment promotion and technological spillover mechanism.Then through the urban-rural income ratio and Theil index,it explains the current situation of urban-rural income gap in the Yangtze River economic belt,and analyzes the current situation of foreign trade and foreign direct investment in the Yangtze River economic belt.Based on mechanism analysis and current situation analysis,this paper constructs econometric model,selects panel data of nine provinces and two cities in the Yangtze River economic belt from 2000 to 2015,and empirically analyzes urban-rural income gap of FDI and foreign trade based on panel data results.Finally,this paper puts forward policy suggestions on how to narrow the income gap between urban and rural areas in the Yangtze River economic belt from foreign trade,FDI,school education,national policies and other aspects.