Research On The Impact Of Foreign R D Embeddedness On Rural-urban Income GAP

The impact of foreign R&D embeddedness on urban-rural income gap is complex,involving three fields: international investment,technical economics and development economics.In view of the current situation that the relevant theories are inadequate,this paper constructs a mathematical model of the urban-rural income gap including foreign R&D embeddedness by referring to Melitz's heterogeneous manufacturer model and the "dual" economic theory of John C.H.Fei and Gustav Ranis,and discusses theoretically the impact of foreign R&D embeddedness on the urban-rural income gap;and calculates the foreign R&D of 30 provinces and cities in 2000-2016 with the help of principal component analysis.The index system includes eight sub indexes,such as embedded indexes of foreign R&D institutions;Based on the theoretical decomposition of the urban-rural income gap,using the panel data of 30 provinces and cities in China from 2000 to 2016 and the CES production function,this paper makes a quantitative analysis of the income gap between urban and rural areas in China from five aspects: innovation intensity,innovative labor use tendency,diminishing marginal return of labor,capital accumulation degree and labor absorption degree of industrial sector;On this basis,we use directed acyclic graph method to study the causal relationship between foreign R&D embeddednesst,five decomposition items of urban-rural income gap and urban-rural income gap in the same period.DAG results show that:(1)theoretically,the increase of foreign R&D embeddedness will generally narrow urban-rural income gap in host countries,but if the host country is a big country,the "strategic effect" caused by oligopolistic response theory will widen urban-rural income gap in host countries,which is robust to the profit repatriation of multinational companies and the free flow of rural labor in host countries;(2)historically,since 2000,the composition of China's urban-rural income gap has changed significantly,the proportion of "innovation effect" similar to "direct effect" has declined significantly,while the proportion of "factor accumulation effect" similar to "strategic effect" has increased significantly,in which the marginal decline of labor returns has even slightly exceeded the level of net capital accumulation;(3)from the perspective of empirical study,similar to the conclusion of theoretical model,foreign R&D embeddedness has effectively suppressed urban-rural income gap,which is robust for the discussion of sub regions and the analysis of the impact path.