Research On The Income Gap Between Urban And Rural Residents: Taking Jiangsu Province As Example

Since the reform and opening up, our country has made great achievements in economic development and social construction. While we improved economic strength significantly, the situations of each district in urban and rural income gap of residents are very severe. The deterioration of urban-rural relationship will challenge sustained economic growth and development objective. As one of the smallest provinces in the income gap between urban and rural residents, in-depth analysis of Jiangsu does not only have good guidance and demonstration significance in solving problems in urban-rural income disparity, but also is the inevitable requirement of going on to prevent the income gap between urban-rural residents and coordinating the development of urban and rural areas. At the same time, the regional heterogeneity in economic development of Jiangsu province is obvious, forming the situation of regional differentiation in South, Central and North Jiangsu, so there is an important policy meaning to set proper models for deep research on this problem. On the basis of the above consideration and previous research, this article does further exploration on current income gap between urban and rural residents and the related factors in hopes of helping to make relevant policies, maintain stable economic development and further improve the integrity level and quality.Based on the related income distribution theory, this article uses multiple indexes to analyze the changing track of the urban-rural income gap and does lateral comparison in the interval. All these clearly show the gap between urban and rural residents and the specific constitution. Then, it makes basic judgment at the future trends of the income gap between urban and rural residents through hypothesis analysis of Kuznets curve and use kinds of exponential smoothing method and ARMA models to predict. Finally, in conjunction with the relevant theory, using Panel-data model, this paper does empirical analysis of impact factors with method of Panel cointegration to reveal of the differences among the effect factors and explore the concrete paths to control the income disparity.Through the above analysis, the paper comes to the following main conclusions:First, In general, after the income gap between urban and rural residents in Jiangsu province experienced volatility, it expands unceasingly in recent years. But if specific to each item, different regions and intern are different.Second, the income gap between urban and rural residents in Jiangsu complies with the characteristics of the inverse U curve, but the dropped stage is also unsure. Through the analysis of three economic plates in urban-rural income gap of residents, it illustrates the close relationship between the income gap and regional economic development to a certain extent.Third, among the influence factors, per capita GDP plays the remarkable positive role in urban and rural income gap, financial support, the proportion of expenditure of agricultural loans and urbanization has expanded effect in 5% level, proportion of administrative personnel and international investment narrowed income gap in different degrees, in addition, proportion of grade highway has a negative effect, but not obvious. And in every region, different factors have differences in the direction and intensity, especially embodied in economic growth and indirect distribution. Finally, the paper suggests some policy suggestion based on the above conclusion in order to control the income gap between urban and rural residents.