Research On The Impact Of Foreign Direct Investment On The Urban-Rural Income Gap In Hubei Province From 1981 To 2020

Since the reform and opening up,China has consistently adhered to the development of the national economy through continuous opening-up.Both the economic aggregate and economic quality have significantly improved,and the per capital income of urban and rural residents has also significantly increased.However,it should also be noted that the existence of a dual structure between urban and rural areas can lead to excessive concentration of foreign direct investment in urban areas,resulting in a shortage of foreign capital resources flowing into rural areas and the primary industry,which in turn cannot effectively meet the demand for foreign capital in rural production,leading to a gradual expansion of the absolute value of the income gap between urban and rural areas.Scholars have done some research on how foreign direct investment affects the urban-rural income gap,but the research perspective is relatively macro,lacking a certain degree of pertinence,and there is no relatively consistent conclusion.Hubei Province has been given a strategic fulcrum position in the strategy of the rise of central China.Studying the issue of foreign direct investment and urban-rural income gap in Hubei Province is a valuable topic,which is conducive to the refinement and deepening of research in this field.Based on this,this article will study whether and how foreign direct investment will affect the urban-rural income gap in Hubei Province.There is no official statistical indicator for measuring the urban-rural income gap.After reviewing previous literature in related fields,this article believes that the urban-rural income ratio is a relatively comprehensive and accurate indicator.This article is mainly divided into five parts.In the introduction section,it analyzes the research background and significance,literature review,research ideas and technical routes,research methods,innovations,and shortcomings.In the first chapter,after analyzing the current situation of utilizing foreign direct investment and the urban-rural income gap in Hubei Province,it is found that foreign direct investment in Hubei Province is excessively concentrated in Wuhan,and less attention is paid to the primary industry.The absolute value of the urban-rural income gap is expanding.In the second chapter,this article further introduces the Cobb Douglas function to make a mathematical analysis of the impact of foreign direct investment on the urban-rural income gap in Hubei Province,as well as a theoretical mechanism analysis of the industrial structure,regional distribution,technology spillovers,and foreign trade behind the indirect impact.In the empirical part of Chapter 3,based on the panel data of 13 cities and prefectures in Hubei Province from 2000 to 2019,this paper uses a dual fixed effect model to conduct empirical analysis.From the empirical results,on the whole,foreign direct investment inflows contribute to reducing the urban-rural income gap in Hubei Province,but there is regional heterogeneity.Based on the level of economic development and the current characteristics of foreign direct investment in various regions of Hubei Province,a heterogeneity analysis was conducted by dividing Hubei Province into Wuhan Economic Circle regions and non Wuhan Economic Circle regions.It was found that the inflow of foreign direct investment in the Wuhan Economic Circle manifested itself in expanding the urban-rural income gap,while in the non Wuhan Economic Circle it manifested itself in narrowing the urban-rural income gap.Based on the above research findings,this article proposes four countermeasures in Chapter 4.First,optimize the business environment and enhance the attractiveness of foreign investment in Hubei Province.Secondly,the introduction of FDI policies should be tilted towards non Wuhan regions to promote coordinated regional development.Third,the policy of introducing FDI should be tilted towards the primary industry to optimize the industrial structure.Fourth,fully absorb the spillover effects of FDI and strengthen innovation capabilities.