Narrow The Chinese Cities, The Rural Gap Between Policy Research

At. present,the development of China's urban and rural areas is going towards two extremes.Simple observation of the status quo of cities or the countryside would lead to completely different conclusions. In the past few years, farmers in China did not have a good harvest,which results in low income overa11 and slow growth of per capita income of farmers for many years.Meanwhile, the income gap between China's urban and rural residents is widening. China's urban-rural disparity has been the most serious in the world. The ratio of urban-rural income is now over 300%, even more serious than days before reforming and opening up. This paper made a quantitative research on main explanatory variables for the income gap between China's urban and rural residents.The author thinks that agriculture,compared with secondary and tertiary industries,the continuous improvement of labor productivity is the most important reason for the income gap between urban and rural residents. The disparity of human resources between urban and rural areas is the fundamental reason. In the past few years, the action to change the structure and to promote urbanization objectively played a great role in widening the income gap, while the Government's fiscal expenditure had deterrent effect on the expansion of the gap. To counter the problem of income gap between China's urban and rural areas,this article summarizes several problems in current researches:to set the income model and illustrate the impact of human capital on regional disparities with its marginal effect, on income; to put forward a new idea for the research,which is used to break down the regional gap; to show the potential deviations caused by incorrect analyzing methods through examples;to offer a theoretical explanation for this phenomenon and to suggest issues\the government should pay attention to in rural and urban policy making.