The Study On Income Difference Between Rural And Urban Residents

The income difference between rural and urban residents has been long time, but it had been kept stable before the open-door policy. After the open-door policy being implemented, the income difference between rural and urban residents has experienced the process that it reduced firstly and then expended. Currently, the great income difference between rural and urban residents has been one of the important factors which restrict the economic development of our country. First, in this paper, the income difference between rural and urban residents has been measured again form the aspects of income flow and stock, and the history and present situation of it has been described comprehensively. Then the article analyzes the effect brought by extension of urban-rural income difference, but we emphasize the process of consumption, investment and politics. As a result, the extension of China's urban-rural income difference makes the disadvantage in the stable growth and structure-improved of consumption, investment and politics, and can't make long-term growth optimum. We also analyze the reason that affect China's urban-rural income difference and cause it to extend, from the aspects of transaction efficiency and financial development besides the traditional viewpoint. Finally, the paper provides some policies and proposals for governors according to the reasons, which affect China's urban-rural income difference and cause it to extend, and the affect brought by extension of China's urban-rural income difference.