The Analysis On Effects Of Income Gap Between Urban And Rural Residents On Economic Development Of China

Since the reform and opening-up policy was carried out, our national economy has kept developing rapidly always. Urban and rural residents income levels, have greatly increased. But when the level of income raises, the constantly expanded income gap between urban and rural residents is also followed. Although the income gap is inevitable in the economic development process, and the appropriate income gap has good effects on the economic, too large gap between the income will have an adverse effects on economic development. After we have the research on effects of income gap between urban and rural residents on economic development of china and have the analysis of the income gap between urban and rural residents on economic growth, household consumption, industrial structure. We can make policies for narrowing the gap between urban and rural areas,the building of new socialist countryside and well-off society by these conclusions. So the topic of this article has a strong theoretical and practical significance.This article attempts to use the combination of theoretical analysis and empirical analysis, the combination of qualitative analysis and quantitative analysis methods, and we study this question on the base of quantitative analysis, empirical analysis methods, so we can get a more comprehensive and reasonable conclusion.Firstly, this paper defines the connotation of income gap and economic development and from the view of economic growth, residents consumption level and consumption structure and industrial structure.We analyze the income gap between urban and rural residents on the impact of economic development mechanism; Secondly, we use the method of the general statistical description to analyse china's urban-rural income gap between the changes in trends and stage characteristics since the reform and opening up,and to judge the nature of the income gap at this stage; Again, we use granger causality test, cointegration theory, extended linear expenditure system model and gray relational analysis to analyze the impact on the economic growth, residents consumption level and consumption structure and industrial structure by the income gap between urban and rural residents, then lead to the conclusion of the rationality of the coexistence phenomenon between the income differential, which caused by the industrial output efficiency and the progress of the industrialization and urbanization, and the economic increase brought by the higher industrial structure,also line out the important ways to reduce the income differential between urban and rural residents:to improve the urbanization level, transfer the surplus agricultural labor force, and feedback from industry to agriculture; Last, we analyse the reasons for its formation and proposed countermeasures and suggestions to narrow the gap in order to promote rapid economic growth.