A Study On The Influence Of Foreign Trade On The Income Gap Between Regions In China

It has been more than 40 years since China started reform and opening up in 1978.During this period,China's foreign trade has gradually accelerated,and by 2020 China's foreign trade will be in a leading position in the world.Not only that,China's strategy of opening up to the outside world is still being implemented,with the tariff level still being lowered,and the relatively closed market inside China is also following the trend and gradually opening up the market to the outside world.At the same time,in order to deepen international trade,China took the initiative to conclude bilateral free trade agreements with other countries.In the process of the continuous development of China's foreign trade,many problems have arisen one after another.China's income distribution has always been different,whether it is between industries,between urban and rural areas or between regions.If this situation cannot be solved,China's economic dynamics will not develop positively.This article from the perspective of foreign trade,under the condition of considering other factors,to remove the northeast three provinces,Hong Kong,Macao and Taiwan region and the Tibet autonomous region,to the rest of China 27 provinces according to the statistical yearbook of division standard is divided into eastern,central and western three areas,and then to elements as the breakthrough point of the research,the introduction of capital elements(FDI),the education level and technology level of development as well as the second and third industry employment structure such as control variable,respectively to study the foreign trade of the income gap in 27 provinces in China and the eastern,central and western three of the influence of income gap between regions.First of all,starting from the theory,through the analysis of international trade theory on the impact of foreign trade on regional income gap,as the theoretical basis for this study.Secondly,from the empirical point of view,the panel data model is adopted to select 19 years of data in China from 2000 to 2018,and the spatial measurement and co-integration test are used to analyze how foreign trade affects the income gap between provinces and regions in China.Then,through the analysis of the empirical test results,it is concluded that China's foreign trade increases the income gap between 27 provinces,cities and three regions in China,and capital factors(FDI)also has the same influence,while the employment structure,education level and technical factors of secondary and tertiary industries reduce the income gap in China.Therefore,we should strengthen the cooperation between regions andpromote the coordinated development of each region.To strengthen opening up;Improve the quality of regional trade environment with low openness,and "go global" better on this basis;Develop economy with regional characteristics and strive for foreign capital market;Attaching importance to education and promoting the renewal and sharing of educational resources;We will improve relevant policies and actively coordinate with industries in developed regions.