Research On The The Income Gap Between Urban And Rural Areas In The Chinese Government Dominated Economy

Chinese economy not only has unparalleled vitality,but also there is nothing comparable to this complexity.The fundamental reasons for China's long-term economic growth are a lot of discussion and controversy,however,the characteristics of the "government led" economy have become the consensus of the academic community,the government can not only directly participate in economic activities,but also make various economic development policies to guide private economic activities,more importantly,the institutional innovation driven by the government constitutes the source of economic growth.In addition,the "growth incentive" formed in the Chinese decentralization practice leads to the local government participates in and even dominates the economic operation of the distric,taking economic growth as the primary goal of governance.As cities and non-agricultural industries are the main source of modern economic growth,therefore,under the leadership of the government,the local fiscal expenditure must be urban tendencies,it causes distortion of the allocation of public resources and urban-rural economic policies,not only directly aggravated the unbalanced development of urban and rural areas,but also affects the change of the urban-rural income gap through the flow of population in the process of urbanization,change of industrial structure,market-oriented reform,foreign direct investment competition of local government etc.Based on the characteristics of "government dominated" in China's economy,this paper studies the change of urban-rural income gap.First of all,this paper is to sort out the classical literature of urban-rural income gap,fiscal decentralization management and China's decentralization practice to clearing the theoretical logic of "government leading" in China's economy and the mechanism of influencing the urban-rural income gap.Secondly,this paper analyses the characteristic facts and regional heterogeneity of the "government led" and the change of urban-rural income gap in China's economy,further examines the reasons for the changes of urban-rural income gap in the government oriented economy.Thirdly,based on the characteristic facts of the government led,selection population flow,industrial structure change,marketization process and local government competition in the process of urbanization from four perspectives to systematic investigation the theoretical mechanism and empirical evidence of the changes in urban-rural income gap in the government dominated economy,and further investigates the influence of quality of the system,decentralization incentive on the urban-rural income gap.Finally,combin the main conclusions of this paper,puts forward system reform and reconstruction measures on reduce the urban-rural income gap and realize the shared development between urban and rural areas.The main conclusions of this paper are as follows:(1)The core of Chinese decentralization is "political centralization + economic decentralization",the degree of "government lead" in China's economy is gradually increasing,and the ability of the government to dominate the economy is also increasing.(2)The urban-rural income gap in China was formed before the reform,but the change and expansion of the urban-rural income gap is after the reform and opening up,to pursue the efficiency of economic growth,carry out a series of urban biased institutional arrangements,agricultural and rural development are serious lag,the urban-rural income gap is also aggravated.(3)It formed urban bias of distribution of public resources and economic policy in the government dominated economy,which aggravated the urban-rural income gap.The "growth incentive" formed in the Chinese decentralization leads to the local government has a unique preference for economic growth in its jurisdiction,pay more attention to industries and towns that can bring the political star effect,agricultural and rural areas are often at the edge of development,and there are obvious urban bias in the distribution of public resources and economic policy,therefore,the economic characteristics of the government lead will significantly expand the urban-rural income gap through direct resource allocation mechanism and indirect institutional environment mechanism.(4)Population flow,change of industrial structure,marketization process and local government competition,all of them have a significant impact on the change of urban-rural income gap,and these effects are constrained by the economic characteristics of "government led".(5)There is a negative correlation between institutional quality and urban-rural income gap,the improvement of institutional quality can reduce the urban-rural income gap;the "growth incentive" formed in the Chinese decentralization leads to local governments are more in pursuit of economic growth than the regulation of income distribution,and also lead to the expenditure based decentralization incentive hassignificantly increased urban-rural income gap,but income based decentralization incentive can significantly reduce the level of urban-rural income gap.In addition,the economic and social reform of China and non equilibrium characteristics of factor endowment lead to a significant regional heterogeneity in the change of urban-rural income gap in the government dominated economy.The main features and possible innovations of this paper are as follows:(1)This paper study the income gap between urban and rural areas based on the characteristics of China's economic growth.The change of urban and rural income gap in China is closely related to the economic and social changes in urban and rural areas since the reform and opening up,and the local government plays a vital role in this policy change.(2)the income gap between urban and rural is essentially an unbalanced evolution of the pattern of urban and rural material interests,it is a political economy problem.It needs analysis and study using political economics.This paper uses the analysis paradigm of political economy to examine the cause of income gap in urban-rural from four levels,such as essence,behavior,system,incentive and so on.(3)The government led economy to influence the income gap between urban and rural areas have two mechanism,direct resource allocation mechanism and indirect institutional environment,and the change of the income gap between urban and rural areas has the characteristics of path dependence and the heterogeneity of function distribution.this paper will be based on China's provincial panel data,selection of static panel analysis model,dynamic panel analysis model and panel quantile regression model to empirical study on the change of urban-rural income gap in the government oriented economy.