FDI, Industrial Structure and Urban-rural Income Inequality: Analysis of Spatial Durbin Model Based on 11 Provinces (Cities) in the Yangtze River Economic Belt

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.