An Empirical Analysis Of Urban-Rural Income Gap And Economic Growth In Gansu From Multi-perspectives

The main purpose of this thesis is to analyze the relation of Economic Growth and urban-rural income gap in Gansu province. The time series date span is form 1978 to 2008 and the panel date span is from 2000 to 2008, includes 14 cities. Research methods are:first, the co-integration analysis and vector error correction model are applied to study the long-run equilibrium relationship and the short-run dynamic characteristics between urban-rural income gap and economic growth. Secend, the methods of panel unit root, panel co-integration tests are used to measure the role of economic growth on urban-rural income gap, taking account of the variables investment and urbanization.There are three main different points from the existing literatures. First, study on province-case is of realistic importance. Second, the recent vector auto-regression and panel date analytical methods make up for the empty of Gansu date research to some extent. Third, this paper keeps a close watch on four problem areas and five economic zones and takes a demonstration study based on two points of view.The empirical researches show that, first, a long-run equilibrium relation exists between urban-rural income gap and economic growth. The elastic co-efficient of the variable economic growth is negative. It has the reduction effect on urban-rural income gap. Second, besides the ecological problems region, the co-efficients of the variable economic growth of other areas are positive. Economic growth does not reduce the urban-rural income gap effectively. Third, the co-efficient of the variable economic growth of Hexi region is negative and the co-efficients of Longdong, Longnan and Gannan economic regions are positive, and the co-efficients of Longdong, Longnan and Gannan economic regions are not statistically significant.