Urbanization,Foreign Direct Investment And Urban-Rural Income Gap In Guangxi

Since China opened the doors,having friendly trade with the rest of the wo rld,China's economy in the high speed development period,but all sorts of problems also appear constantly,the healthy situation of China's economic development has deep influence,which caused widespread concern of the income gap problem is particularly serious,had caused many more difficult problems.The widening income gap between urban and rural areas makes the living standard of rural residents far different from that of urban residents.Guangxi,as a typical region with too large urban-rural income gap in China.Since the reform and opening up,the urban-rural income gap has been expanding on the whole,showing a U-shaped fluctuation.Based on this,the paper uses Guangxi data to explore the relationship between urbanization,foreign direct investment and urban-rural income gap.Guangxi is divided into Beibuwan economic zone,Zhujiang-Xijiang economic belt and Guixi-rich resource area,and carry out the empirical study of three economic zones in Guangxi.It is found that: For the Beibuwan economic zone,in the short term,urbanization gradually widens the urban-rural income gap.With the implementation of the urbanization process,it will not have a great impact on the income gap,but the urban-rural income gap tends to reduce;In the short term,FDI made the income gap widens which between urban and rural areas.But FDI has a negative impact on narrowing the urban-rural income gap.However,with the increase of FDI,the income gap between urban and rural areas began to narrow.In the long run,the increase of foreign direct investment makes the urban-rural income gap gradually narrow.For the Zhujiang-Xijiang economic belt,in both the long term and the short term.Urban-rural income gap receives the effect fro m urbanization,which will further reduce the urban-rural income gap in a period of time.However,the effect has diminished to almost zero.In the short run,FDI has a negative impact on narrowing the urban-rural income gap,but in the long run,the incre ase of FDI makes the urban-rural income gap gradually narrow.For the Guixi-rich resource area,there is no obvious relationship between urbanization rate and urban-rural income gap in the short term.But in the long run,there is a big income gap.So in the short term or in the long term,FDI can effectively explain or predict the change of rural-urban income gap in Guixi-rich resource area.Through the empirical analysis,this thesis concludes that both urbanization and FDI can effectively narrow the urban-rural income gap,it also puts forward methods and countermeasures to improve the situation that the urban-rural income gap in Guangxi is too large,so that the research results can be supplemented,which plays an important guiding role in narrowing the urban-rural income gap and enhancing the happiness of Guangxi' people.