One country’s foreign economic relations have different effects on its domestic agents. Based on provincial panel data，using spatial econometric analysis，this article analyses the effect of real effective exchange rate on income gap between urban and rural. Urban-rural income gap is not uniformly distributed on geography，and the western areas’ gap is larger than the eastern ones. There is significant spatial positive correlation in different region’s urban-rural income gap. The empirical results indicate that the real effective exchange rate and urban-rural income gap have robust positive relation；and urbanization，second and third industry employment ratio and export scale are significant negatively correlated with urban-rural income difference；and inflation rate，urban wages and education level are positive correlated with urban-rural income difference；and FDI ratio of the entire economy is small，and their relation is not significant.