Abstract: Using panel data from 2000 to 2020, and using the spatial Dubin model, this paper empirically analyzed the impact mechanism of foreign investment and industrial structure on the urban-rural income gap. The results showed that, the uneven development of each province was significant, presenting a spatial distribution pattern in which the coastal areas were superior to the central and western regions. The study also found that, foreign investment had a positive impact on the income gap among provinces in the Yangtze River Economic Belt, while the proportion of the secondary and tertiary industries had a significant impact on the urban-rural income gap, and was always positively correlated. The improvement of education level and trade openness was conducive to reducing the urban-rural income gap. Therefore, it is necessary to further narrow the urban-rural income gap by increasing FDI investment in rural areas, optimizing the industrial structure and improving the quality of rural labor.