The Role of Foreign trade on Rural Income in China—Based on Data from Shandong Province

Abstract

Improving rural people’s income has always been a critical task of Chinese governments. Whether foreign trade has made contribution to the income of people residing in rural area is a research worthy issue. Based on the data of Shandong province in china over the 1984–2016 periods, the impact of foreign trade on rural per-capita income dynamics is examined. The cointegration equation indicates that foreign trade export has caused increase on rural per-capita income, but import has caused decrease on rural per-capita income. As foreign trade export brings more advantages than the disadvantages brought by import, foreign trade is beneficiary to the income of people residing in rural area. At last, relevant suggestions are given.