The Impact Of Foreign Trade And FDI On The Income Gap Between Urban And Rural Areas In Shandong Province

The rural-urban income gap has always been a topic of great concern to scholars,and the foreign trade and investment are two vital factors that cause the urban-rural income gap.At present,most scholars have conducted comparative studies on all provinces in China,and there are few literatures for detailed studies on a single province,which can easily cover the unique characteristics of a particular region.Shandong Province,a major province for trade and investment,is selected as the research object in this paper,the influence of trade and FDI on the income gap between urban and rural residents is investigated by collecting the panel data of 17 prefecture-level cities in Shandong from 2000 to 2017,and a spatial econometric model is established to examine the impact of it.The results show that:(1)The import and export trade,FDI and urban-rural income gap of 17 cities in Shandong all have a certain spatial correlation,and the urban-rural income gap in Shandong is not only affected by internal economic factors,but also affected by the similar geographical location or the regions with similar economic development levels.(2)Export has a narrowing effect on the urban-rural income gap in Shandong Province,while import has no obvious effect on it.FDI has a widening effect on the urban-rural income gap in Shandong.(3)The impact of import,export and FDI on the urban-rural income gap in the different regions of Shandong is different from that in the whole Shandong province.Export has a significant role in narrowing the urban-rural income gap in Ludong,Luzhongnan and Luxibei;Import will widen the gap in Luzhongnan,but it has little effect on the gap in Ludong and Luxibei.FDI will expand the urban-rural income gap in Luxibei,but not significantly affect the income gap in Ludong and Luzhongnan.(4)Urbanization,the development of primary industry and the increase in social fixed assets in Shandong can effectively reduce the urban-rural income gap;However,the fiscal support for agriculture and financial development in reducing the urban-rural income gap has not been reflected.Based on the above research results,this paper puts forward corresponding suggestions in order to narrow the urban-rural income gap in Shandong Province and realize its stable economic and social development.