The Empirical Analysis Of Income Gap Among Rural Residents In China

Since the reform and opening up policy was launched, China has been undergoing a rapid economic development, meanwhile Chinese people's living standards has been improved greatly with the rising incomes, but we should see the income gap among rural residents in our country in recent years has gradually expanded too, which has affected the sustained economic growth and social stability, so to find some solutions eliminating the adverse effects to the economic growth by means of analyzing the factors which caused the income gap in rural residents is of practical significance for the sustained growth of national economy and the progress of society. In this paper we use some methods of Economic Growth and Social Science to make a positive analysis on the rural income difference in today's China, and then have a detailed study on the relationship of the personal income distribution and the economic development in order to give some suggestions of policy.At first, we will introduce some basic theories of income gap and the current studying situation both at home and abroad, Based on the residents survey materials and 11 index selected ,this paper conducts a model regressed on the income gap, then the quantitative analysis demonstrates that the major factor leading to rural income disparity lies in the unbalanced development of rural non-agricultural industrial, the unbalanced structure existing in rural economic development ,the inclined level of education, the lagged of Scientific and technological level and the lack of the government's policies concerning agriculture and so on.Secondly, the influence of the rural income gap in China on the economic development was conducted into three aspects. The first aspect is the relationship of rural income gap and economic growth, we show that in short time the rural income gap increases with economic development after Economic Reforms in China, but in the long time they keep a stable situation, The second aspect is the relation of income of consumption, we set up a econometric model using the Gini Coefficient and the rural average consume, then we come to the conclusion that the income gap will reduce the average consume of rural residents, and further weaken the pulling effect of growth to the consumption. The third aspect is the relation of rural income gap and investment. We analyze the influence to the investment from three aspects, the impact to human capital,physical capital,natural capital bring about some contradictory mechanism.Thirdly, by comparing to the rural situation of the developed countries and other developing countries, we respectively elaborate the basic principles of using tax revenue social security, compulsory education to slow down the expanding of rural income gap, then we also introduce the practice of regulating income gap by means of these mechanisms in China, and point out the existing problems.Finally, we make a brief conclusion and put forward some policy suggestion, including the development of TVEs, promoting rural economic cooperative organizations, speeding up urbanization progress in order to absorb the surplus labor force, redressing agricultural industry structure, launching strategy of science oriented agriculture, etc.