A Spatial Heterogeneity Study On The Impact Of FDI On Urban-rural Income Gap In China

Since the reform and opening up,the amount of foreign direct investment inflow of our country has continued to increase,the economic potential was effectively stimulated,economic development is booming,and the level of opening up has been rising.However,with the rapid growth of our economy,our social economic development faces some problems.The disparity between the rich and the poor presents an unstable development situation.The gap between urban and rural income is one of the important aspects that cannot be ignored.In particular,the income gap between urban and rural areas has a significant regional difference.The income gap between urban and rural areas in China’s eastern region,central region,western region and northeast region is obviously different.In fact,with the introduction of FDI,different regions will have different impacts on urban-rural income gap due to their spatial differences in industrial structure,trade structure and employment structure.Therefore,this paper focuses on analyzing the heterogeneity of FDI’s influence on the urban-rural income gap in different regions,and systematically reveals the different effects of FDI on the urban-rural income gap in different regions and the related transmission mechanism.This paper mainly includes five parts.The first part focuses on the relevant theories in this field,and systematically combs and comments on the relevant research results of domestic and foreign scholars,thus laying a solid theoretical foundation for this study and further clarifying the research idea of this paper.The second part analyzes the spatial distribution difference of FDI and the status of the income gap between urban and rural areas in different areas of our country in detail,reveals the spatial distribution of both accurately,and carries on the statistical analysis,which lays the practical analysis foundation for this study.In the third part of the paper,this paper makes a theoretical analysis of the mechanism of FDI’s influence on urban-rural income gap in different regions,and focuses on revealing the spatial heterogeneity of urban-rural income gap in different regions caused by FDI’s differential influence on industrial structure,trade structure and employment structure in different regions.In the fourth part of the paper,based on the macro panel data of 31 provinces(autonomous regions and municipalities directly under the Central Government)in China from 2005 to 2021,this paper makes an empirical study on the relationship between FDI and urban-rural income gap in different regions by using panel fixed effect,and after nationwide testing,Furthermore,regional difference measurement is carried out in the eastern region,the central region,the western region and the northeast region,and the transmission mechanism is tested.The fifth part is based on the empirical analysis of the results of this paper to narrow the urban-rural income gap in different regions of the specific countermeasures and suggestions.The thesis concludes that:(1)On the whole,FDI has a significant negative effect on the income gap between urban and rural areas,namely,with the continuous inflow of FDI,the income gap between urban and rural areas will be narrowed.(2)From the perspective of different regions,the influence of FDI on urban-rural income gap in different regions has obvious spatial heterogeneity.Among them,the difference of industrial structure,trade structure and employment structure in different regions is an important way for FDI to form urban-rural income difference in different regions.The regional difference test results show that the industrial structure has a significant partial intermediary effect in the eastern region,but not in other regions.That is,FDI can affect the urban-rural income gap in the eastern region by improving the industrial structure in the eastern region.Trade structure has a significant partial mediating effect in the eastern region,but not in other regions.That is,FDI can affect the urban-rural income gap in the eastern region by improving the trade structure in the eastern region.Employment structure has a significant partial intermediary effect in the western region,but not in the eastern,central and northeastern regions.That is,FDI can affect the urban-rural income gap in the western region by improving the employment structure in the western region.(3)The test results of panel fixed effect show that the technological innovation level,infrastructure construction level,educational development level,economic development level and urbanization level in different regions will also lead to the heterogeneity of FDI on urban-rural income gap in different regions.It should be pointed out that since the intermediary effect of industrial structure,trade structure and employment structure is not significant in the central and northeast regions,the convergence of urban-rural income gap between the central and eastern regions should focus more on strengthening technological innovation,infrastructure construction,education development and urbanization construction in the above regions.(4)According to the analysis and test results of panel fixed effect,this paper further puts forward targeted suggestions to give full play to the guiding role of FDI and solve the heterogeneity of urban-rural income gap in different regions.For example,to guide the regional equalization of FDI flow,increase the investment in central and western regions and Northeast China;Promoting the rationalization of regional inflow of FDI and optimizing the industrial development layout of each region;Encouraging FDI investment in rural education to shorten the gap between urban and rural education development;Strengthening FDI investment in infrastructure to promote economic development in backward regions;Promoting regional import and export trade cooperation and guiding high-quality development of regional economy and trade.