| Since the implementation of the reform and opening policy in 1979,the number of foreign direct investment(FDI)entering my country has grown rapidly.The impact of FDI on my country’s income distribution has always been one of the hotspots of economics.The direct effect of the rapid influx of FDI is to increase my country’s capital stock and promote labor employment.The additional effect is the impact on my country’s income distribution.But with the increasing scale of FDI,its drawbacks have gradually emerged.Studies have shown that the continuous influx of foreign direct investment has had a "squeezing effect" on Chinese local companies.So will the emergence of the "displacement effect" affect the income distribution of foreign direct investment in my country to some extent?In the above context,this paper analyzes data from 285 cities in China from 2001 to 2013 and examines the impact of FDI on income distribution in urban and rural areas of my country.First,I will build a basic model and analyze the impact of FDI on the incomes of urban and rural areas in my country from three angles:global,regional and temporal.On this basis,this article attempts to add the commercialization process to the model to further study the effect of attenuating the degree of commercialization on the impact of FDI on income distribution in urban and rural areas.According to empirical results,FDI has varying degrees of positive effects on urban and rural income levels in my country,the impact on rural income of which is greater than the impact on urban income.The influx has a positive impact on my country.Reduce the income gap between urban and rural areas.However,from the perspective of time trend analysis,as FDI increases,it has gradually had a positive impact on income inequality between urban and rural areas in my country.At the same time,as the degree of commodification increases,it can be seen that the influx of FDI creates a"congestion effect" by intensifying competition in the market and resources,which results in negative change.a positive impact of FDI on urban and rural areas.areas.In other words,as the degree of commercialization increases,the negative impact of FDI on the income gap between urban and rural areas will gradually become positive. |
