Study On Urbanization And Poverty Reduction In China

Since the reform and open policy，with the growth of economy，the cause ofChina’s anti-poverty has made great achievements. However，the late1990s, it emergedthe phenomenon of poverty reduction slowed down, owing to the larger number ofChina’s poverty population and the deterioration of income distribution. When itcomes to the economic system transition period in China, urbanization is an inevitabletrend of development of human society. Urbanization is not only reflected in thebenefits of economic development, but also reflected in the fair of economicdevelopment. Currently, along with improvement of urbanization level， the innerpoverty of rural and urban has not been resolved, urban-rural income has been alsobecoming more unequal, urban-rural split and confrontation has become the shackles ofChina’s global development and the harmonious society construction. Therefore，thereis great theoretical value and practical significance when analyzing the urbanizationimpact on urban-rural income gap and poverty changes in urban and rural.This article analyzed the process of urbanization and poverty reduction on the basisof relations theory in domestic and international, and the urbanization impact onurban-rural income gap and poverty changes in urban and rural, combined with theeconometric empirical research methodology. In this paper, research work conducted in:using the CHNS and CGSS micro database，calculating the regional urban-ruralincome， poverty index， the urbanization rate. This paper discusses the backgroundand facts of the process of urbanization and changes in urban and rural poor;quantitatively analyzes of the root causes of the urban-rural income inequality by usingthe method of the Gini coefficient decomposition based on the regression equation;examines the impact urbanization on changes in urban and rural poverty depend onprovincial panel data from1989to2009. At the end of this paper, related povertyreduction policy has been discussed based on research findings.The main findings are as follows：with the level of urbanization graduallyincreased，the incidence of poverty and FGT index was declining, but the rural andurban inner poverty deepened by different degree. The household registration variablecontributed to rural-urban inequality most. It would be even more prominent by years.Urbanization affect urban and rural poverty with varying degrees by economic growth,population urbanization, industrial restructuring and infrastructure construction. The impact of urbanization on changes of rural and urban poverty varies by urbanizationlevel.