A Research On Income Distribution Between Town And Country Of Guangdong Province

According to the Kuznets's law that income inequality rises with per capital income up to a point, and declines thereafter. Up to 2001 year, per capital Gross Domestic Product of Guangdong province has reached about $4388, which is in the later stage of medium of industrialization. Then, how much is the income differential between the residents of urban and rural in Guangdong province? Which factors have effect on the income differential of Guangdong province?Based on the research, we conclude that: first, Gini coefficient of urban residents is 0.3821,Gini coefficient of rural residents is 0.2753, Gini coefficient of Guangdong province of 2002 year is 0.4082, which is smaller than Gini coefficient of nation 0.4540 ,and has surpassed the international warning line 0.4, and has been trending to expanding. Second, the explaining variations: the income growth rate of urban residents, the income growth rate of rural residents, the price index of agriculture means of production, the price index of purchasing farm produce, the proportion of primary industry possessed in Gross Domestic product, that have the positive and strong relationship with the explained variation—Gini coefficient of Guangdong province.Based on the conclusion, we support the approaches to reduce the income differential between urban and rural residents of Guangdong province, such as to establish the dominant role of government and to formulate the relevant policies and so on.