Foreign Direct Investment

In recent years, foreign direct investment is growing rapidly worldwide. Foreigndirect investment, driven by the company cross-border mergers and acquisitionswave. China, the industry in attracting foreign direct investment (FDI) has madeconsiderable achievements. While the influx of foreign direct investment, China’s percapita gross national income levels began to significantly enhance our revenuestructure also changes. This performance is high, the increasing number oflow-income populations, the income gap widening trend, China’s Gini coefficient isrising year by year, it seems there is no downward trend. Chinese Academy of SocialSciences published in2012,"Social Blue Book" and the "social situation": the trendof widening income gap in China has not yet been reversed. Is not difficult to seefrom the above, China’s stable economic development and continuous improvement of living standards today, on the one hand, foreign direct investment in the continuous influx of China, its scale of investment continues to expand, continue to broaden the area of investment, on the other hand, China’s income level. . Processing panel data, using a more advanced unit root tests and co integration relationship test methods. In the estimation of the model, in addition tothe basic OLS estimation, using state-of-the-art GMM dynamic estimation to reflect the dynamic effects of the model. Finally, a combination of theoretical and empirical research, for foreign direct investment in Chinese residents’ income levels and income structure for a deeper extension and discussed, and relevant policy recommendations. This work is the meaning of the Foreign Direct Investment and Income in China, respectively, starting from the two aspects of foreign investment on income level and income structure, a more systematic, comprehensive study. This article made a lot of work in data processing, and more cutting-edge model estimation method used in the empirical analysis. I hope this paper in this field of research to advance our research on the relationship between Foreign Investment and income. Research results to provide technical support to develop the policy of our government to attract foreign capital and income distribution policy, with a strong practical significance.

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