The Impact Of Economic Openness On The Income GAP Between Urban And Rural Residents In China

Since the reform and opening up,China's economic growth has attracted worldwide attention.With the rapid economic growth,China's economic opening up has also made great achievements,but the urban-rural income gap has not been improved,showing a trend of expansion.On the one hand,a comprehensive assessment of China's economic openness has certain significance for the opening-up strategy in the new era.On the other hand,a study of the impact of economic openness on the per capita income gap between urban and rural areas will help us to find the relationship between opening-up and income gap and find the "equilibrium point",which has a certain reference for a new round of high-quality economic opening up Leading meaning.In the aspect of theoretical research,this paper combs out the influence path of economic openness on the complex and diverse income gap between urban and rural residents,and discusses the influence mechanism of economic openness on the income gap between urban and rural residents from the aspects of economic growth,commodity price,employment mechanism,policy formation,research on technological progress,combined with the theoretical basis of classical economics,technology spillover,efficiency wage,etc.In the aspect of empirical research,five secondary indicators of four aspects of economic opening are comprehensively considered by principal component analysis(PCA),and the economic openness of 27 provinces,municipalities directly under the central government and autonomous regions(except Xinjiang,Tibet,Qinghai and Hainan)is measured.Then the effect of economic openness on the income gap between urban and rural residents is analyzed Through mixed regression and fixed effect,the basic model is established and conjectured by using the least squares(OLS),and finally the income gap between urban and rural residents in 27 provinces and cities in China is studied by using GMM to avoid its endogenous influence.The main conclusions of this paper are as follows:(1)China's economic openness is basically in the state of ladder like East High West low,especially Guizhou's "basin like" low economic openness;(2)economic openness has significant individual fixed and time fixed effects on urban-rural income gap,and overall economic openness has a negative effect on urban-rural income gap;(3)The interaction between economic openness and government behavior,in general,the economic openness has no significant impact on the income gap,and plays a major role in reducing the income gap.After the division of regions,the economic openness in the eastern and northeast regions has a significant negative effect on the income gap between urban and rural areas;(4)there is still a threshold effect in the economic openness,when the economic openness is greater than 5,the economic openness is more than 5 Openness has a significant role in narrowing the income gap between urban and rural areas.The negative marginal effect of economic openness will be positively affected by the government behavior,that is,the government behavior will weaken the role of economic openness in narrowing the income gap between urban and rural residents.The policy implications of this paper are as follows:(1)the high-level and highquality economic opening has a certain role in narrowing the income gap between urban and rural areas,insisting on expanding economic opening,especially doing a good job in the strategy of opening to the outside world in the central and northwest regions.(2)Under the high-level and high-level economic opening-up,the economic development level basically conforms to the law of Kuznets curve for the income gap between urban and rural areas,and the backward areas strive to cross the "inverted U" turning point,so as to make the economic openness better reduce the income gap.(3)We should make full use of the regulatory capacity of the market,not make too many adjustments and interventions,and give full play to the role of the market.(4)While building a high-level and high-quality open economy,we should pay attention to the investment in technological development.From the above,we can see that technological progress is also the main means to narrow the income gap between urban and rural residents.(5)To solve the problem of central economic openness is the key to "invigorate" the domestic economic opening and income gap.We should make good use of basic projects such as Datong gorge to promote economic opening.(6)We should study the "optimal ratio" of government behavior under the role of economic openness,steadily improve the economic openness of all provinces and cities,and narrow the income gap between urban and rural areas.