RESEARCH ON THE DYNAMIC RELATIONSHIP BETWEEN IMPORT AND EXPORT TRADE ON URBAN-RURAL INCOME GAP, CHINA

Abstract

Since the reform and opening up, China has adopted the policy of "multilateral trade", which has led to rapid economic development and increasingly close international cooperation, but also created the problem of unbalanced development between urban and rural areas. This paper analyzes the dynamic relationship between import and export trade and urban-rural income gap by constructing indicators related to import and export trade and urban-rural income gap and using VAR model, the results show that: there is a long-term equilibrium relationship between import and export trade and urban-rural income gap, and this relationship is volatile, which shows that import and export trade can narrow the urban-rural income gap in lags 1, 3 and 4, and increase the urban-rural income gap in lags 2 and 5. The volatility of the relationship is increasing and then decreasing, and the effect is gradually decreasing.