| This paper studies a problem in Chinese urban-rural dual economic structure's conversion. At first, this paper introduces the theory of dual economic structure, and the Lewis Fei Ranis Model, Jorgenson model and the Todaro model, and the domestic situation of dual economy theory. Namely, a deep study on the dual factor markets, the binary relationship between the economic and income distribution, the services sector in the dual economic structure transformation, the Morphology of the economic structure, the reason of urban-rural dual economic structure, the rural economic development with urban-rural economic structure, and the stage of China's economic development. And it introduces Marx and Engels's main theories of urban-rural relations and reality of our inspiration as well. Secondly, the paper analyzes the stage of China's urban-rural dual economic structure's formation and conversion. After the founding of China, the implementation of priority development of heavy industry and the household registration system, and lots of urban-rural split arrangements has further solidified the urban-rural dual economic structure. Since the reformation and opening up, the disharmony between urban and rural areas has improved. But at that time, the growth-oriented developments strategy is adapt to the needs'development of society. This strategy lead to the dual structure is weakened-repeatedly enhanced and contradicted the urban-rural dual structure. Thirdly, it analyzes the characteristics of China's economic and social structure. After reformation and opening up, our country achieved remarkable success at economic and social development. But, there are some new features appearing, such as, the shortage of labor in many cities. Due to the traditional mode of economic growth, which over pursuit of economic growth, there are many contradictions appearing in our country's economic and social structures, which give a serious impact on China's economic and social sustainable development. So, our country needs to change our mode of economic development urgently. After reformation and opening up, sustained economic growth, transport, industry and urbanization, the rapid development of revenue continues to grow, all of these let the external conditions promoting the agricultural development and maturity. However, there are some factors are still constraint urban-rural dual economic structure transformation. Such as, agriculture, industry, and service are slowing development, household registration system and a series of institutional arrangements, and the allocation of the structure of public finances and unfair. Lastly, the paper gives the important ways to explode urban-rural dual economic structure, namely, accelerate agricultural, industrial and service development, and establish a unified household registration management, equal employment and so on, realization the urban and rural basic public service equalization progressively.In order to get rid of urban-rural dual structure, integrating urban and rural economic and social development is one of the major problems in China in the future of two or three decades. At present, China is in a period of from agricultural society to industrial society. Some contradictions have become prominent increasingly. Urban and rural areas contradiction is the foremost one. This one is not only inhibiting the market demand, but also hampering the sustainable the development of national economy. Therefore, to solve the current social conflict, promote the national economy development overall and coordinately, build a harmonious society and achieve the change mode of economic development, achieve urban-rural dual economic structure transformation is the prerequisite and fundamental way.Chapter one outlines the dual economic structure theory. Firstly, this paper introduces the theory of dual economic structure. Dual economy usually refers to"various asymmetries exist in the production and organization in developing countries."Urban-rural dual economic structure means modern urban industry sector, agricultural sector and rural co-existence of traditional economic structure. It exists in urban and rural production and organization of various asymmetries in developing countries generally. It is a necessary process of evolution of the conversion phase from the traditional agricultural economy to a modern economy. Secondly, the paper analyzes the Lewis Fei Ranis Model, Jorgenson model and the Todaro model, and the domestic situation of dual economy theory. These models reveal the dual economic structure transformation's ways and laws from a different angle. They provide a theoretical basis to developing countries'dual economic structure transformation. But, they also have their own flaws. Thirdly, the paper introduced domestic situation of dual economy theory, the dual-depth study of factor markets, the depth research of binary relationship between the economy and income distribution, the research of the function of services sector in the dual economic structure transformation, the study of the economic Morphology, the research on the formation of urban-rural, the study of the urban-rural dual economic structure and rural economic structure and rural economic development issues and the study on China's economic development stage.The second chapter is focus on the theory of the Marx and Engels theory of urban-rural relations. Firstly, there is an overview theory of Marx and Engels'main elements of urban-rural relations. They believe that the relationship between urban and rural areas experience from"one""separation", and"confrontation", to"integration"generally. Marx and Engels are attached great importance to the function of the productive forces opposing the elimination of the role of urban and rural areas. They stressed the basic role of agriculture, and the significance of raising the productive of agricultural labor and the development of modern agriculture. The theories discussed the leading role of the urban and rural areas and agriculture industry, made a series measures to integrate and interact with urban and rural areas, and had a great importance to the development of science and technology. Marx and Engels'theory is full of science and predictability of the urban and rural systems. It has a great theoretical significance and real revelation to China's urban and rural development. Secondly, the chapter gave the discussion of the reality of urban-rural relations inspiration of Marx and Engels'theory. Such as, focusing on the balance of urban and rural economic and social co-development, and giving full play to the city's radiation and leading role. Rural determines the overall construction of China, so it must be the most important task of the Party. Speeding up the rate of urban and rural economic development is a solid material foundation. Promoting interactions of industry and agriculture, implementing integrated urban-rural macro-management mode, and emphasizing on the role of science and technology in the coordinated development of urban and rural areas are also emphasized in this chapter.The third chapter analyzes the cause of the conversion of China's urban-rural dual economic structure. Firstly, the chapter introduces the formation of China's urban-rural dual economic structure. The most typical dual economic structure was formed in the state after the founding of New China. China chooses to give priority to the orientation of heavy industry. From 1953, China implemented a set of institutional arrangement. Such as, the unified purchasing and marketing agricultural products, people's communes and the household registration system. These arrangements blocked a freedom movement of products, production and labor between urban and rural areas. The results of these strategies undermined the development of agriculture seriously. From the late of 50s, the development of the industrial sector rapidly, while the development of agricultural sector struggled, all of this lead to a highlight of urban-rural dual economic structure. Secondly, the chapter analyzed the evolution of China's urban-rural dual economic structure after the founding. 1952-1978: a highlight stage of urban-rural dual economic structure; 1978-1984: a reduced phase of urban-rural dual economic structure; 1985-1992: a enhanced phase of urban-rural dual economic structure; 1993-1996: a contained stage of urban-rural dual economic structure; 1997-2001: a reinforced phase of urban-rural dual economic structure; since 2002, the decreased stage of urban-rural dual economic structure. On October 2002, the CPC Party Congress Report proposed a major strategic guideline, which is"the co-development of economy and society in urban and rural". Since 2004, the State Council has adopted a series of major policy to support and benefit agriculture. Such as, the implementation of"industry nurture agriculture and city support rural"and"more giving and free, less asking". The Party adopted"a development of production, affluent of life and civilization, clean and tidy villages, and democratic management" from"the CPC Central Committee on National Economic and Social Development Five-Year Plan's recommendations ". The Party proposed a historic task to build the new socialist countryside. The state began to change the distribution of the industrial and agricultural income, to increase investment in rural infrastructure, and to expand the scope of public finance coverage in rural areas. These major strategic measures let the co-development of urban and rural areas as the purpose, and marking changes in China's urban-rural dual economic structure has reached a new historical period. Thirdly, the chapter analysis of the cause of formation and curing of China's urban-rural dual economic structure is the government implementing urban biased policy. Priority to the development of heavy industry strategy lays the foundation for the dual economic structure. The separation of urban and rural areas system cure the urban-rural dual economic structure. The split of urban-rural supplying system of public good strengthen the urban-rural dual economic structure. After reform and liberalization, the growth-oriented development strategy continued the urban-rural dual economic structure.The forth chapter analyzes the characteristics of China's economic and social structure at the current stage. Firstly, the chapter analyzes the current features of China's economic and social structure. As the development of the economy and society and the role of family planning policies, the growth rate of working-age population began to fall from the 80's, declined after 2000, and be expected to stop growing around 2007. The phenomenon means that the source of unlimited supplying is narrowing. And the shortage of rural labor is appearing generally. At present, there is no advantage of age or quality in rural areas'surplus labor. The growing of urban employment and the development of the urban-rural integration in the labor market means China's economic and social development has entered a new stage of development. Secondly, the chapter discusses the traditional pursuit of economic growth over the rate of economic growth. Through the accumulation, there are lots of deep contradictions in the new stage of the development of economic society. Such as, the constraints of resource and environmental, industrial structure and irrationally, economic growth main relying on investment and exports, urban and rural income disparities, regional imbalances in economic development, social development lagging behind economic development, and so on. All of these affect the sustainable development of our economy and society severely. China needs to change the mode of economic development urgently, and achieve development soundly and fast.The fifth chapter analyzes the condition of urban-rural dual economic structure transformation. Firstly, the chapter analyzed the favorable factors of the transformation of urban-rural dual economic structure. The revolution of transportation and the rapid developments of industrialization are the determinants of agricultural change. The evolution of industrial structure, there are large numbers of people and resources from low profit, high-profit agriculture to the secondary and the tertiary industries. As well as industrial and rural areas and farmers economic development provides a vast amount of cheap resources and labor. All of these promote China's sustained high growth. The development of city absorbed a large number of rural populations to non-agricultural employment, and increased demand for agricultural products. Since 1994, the reform of taxing sharing, the state financial revenue was the momentum of rapid growth. Rural reform has made a great success. The innovation of rural land system and agricultural technology advances let agricultural productivity increasing steadily. And it improved the food of China's supplying capacity fundamentally. There is a great improvement of market-based reforms and external open make the rural of resources configured. There is a significant changes in the structures of agriculture and rural. The major active participation of rural labor force in the industrialization and the urban process improvement the income of peasants and living conditions significantly. All of these change the agricultural and rural economic and social landscape deeply. Secondly, the chapter discussed the constraints of urban-rural dual economic structure transformation. Such as, the slow developments of agriculture, industry and services, the household registration system continues to play a role in a series of institutional arrangements, and the unreasonable structure of public finance allocation.The sixth chapter described the major way to eliminate the urban-rural dual economic structure. Firstly, the chapter described the fast development of the three industries the agricultural, industrial and service industries. In agriculture, there are some needs of drafting the development planning of rural, strengthening the rural infrastructure, landing a good work in rural areas transfers, speeding up rural financial system, developing rural education, enhancing the quality of the peasants, speeding up the urbanization, and promoting rural surplus labor force transfer. In the industrial field, there are some needs of to establishing the priority of economic growth and employment pattern, changing in ideas positive, playing the leading role of the government fully, developing the multi-channel financing, developing the new high-tech labor-intensive manufacturing, the introduction of talent, and promoting corporate social responsibility concept. In the service sector, there are some needs of developing modern service industry leader role in the industry priority, developing new services and producer services actively. Secondly, China needs to establish a unified household registration management and equal employment system, promoting the reformation of household registration system and the employment system deeply, further improving the social security system and building a reasonable system of urban scale fatherly. Thirdly, there is a need to establish the equalization of basic public services in urban and rural areas. Such as, increasing financial input in rural areas, improving rural infrastructure, improving farmers living environment, improving rural social security system, and developing rural education.
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