Using the panel data of thirteen cities in Jiangsu province from 2000 to 2013, this paper studies the effects of the export trade on urban-rural income gap in Jiangsu province. Based on the static panel data model and dynamic panel data of GMM model, this paper makes an empirical analysis on the relationship and mechanisms of export trade, development of higher education and urban-rural income gap in the different regions of Jiangsu province. The findings are as follows: Firstly, for the overall, the south of Jiangsu and the middle of Jiangsu, the export trade and the development of high education have expanded urban-rural income gap. In addition, for the middle of Jiangsu, the higher education has a significant mediating effect. Secondly, for the north of Jiangsu, the export trade and the development of higher education have made significant contributions to narrow the urban-rural income gap, and higher education as a mediating variable significantly narrows the urban-rural income gap. Lastly, the urban-rural income gap has self-reinforcing effect in all regions.