The Study Of Urban-rural Income Gap In The Process Of Urbanization

In the procedure the economic of China turned into technology intensive fromlabor intensive, the continuous expansion of the urban-rural income gap is becomingan important factor which restricts the healthy development of the economic of China.With the growth of urban rate, the increase of population, industries gather to thecities continuously. In the process of it, since the dual economic structure is gettingdeeper, the rural labors that moved to cities do not enjoy the civil welfare yet whichthey deserve. Under the circumstance of this, on the one hand, those facts cause theallowance for the cities, and on the other hand, they also cause the discrimination ofdistribution against the rural labors. With both the affect of urban bias and the growthof urban rate, it causes the facts that the income gap between cities and villages isgetting wider. Policies with urban bias provide some kind of guarantee to the dualeconomic structure. Under the combination of urban bias and urbanization, theurban-rural income gap of China gets wider continuously. Urban-rural income gapwhich expands day by day is becoming a potential factor that effects the harmoniousdevelopment of economic society. As a result, this thesis analyzes the correlation ofthese four economics factors in multi angles, with the full study of search did before.This thesis is organized in four chapters, and its main contents are as follows:In the first chapter, this thesis describe the background of the development ofurban and the widen of urban-rural income gap. Through the detailed analysis of thebackground, this thesis discusses the correlation between urbanization and urban biastheory. In the second chapter, this thesis makes a literature review on the interactionbetween dual economic structure, urbanization, urban bias and urban-rural incomegap. Via the summary of literatures in different eras, this thesis clarifies the relationsand varying trend between different economic factors.The third chapter is the main part of this thesis. In this chapter, this thesisanalyzes the extent of urban-rural income gap and its performance in different anglesthrough VAR model, panel data model and spatial expansion model. With the analysisin multi angles, this thesis clarifies the dynamic and individual effect and how thegeographic spatial effects it.The forth chapter is the part on analysis and conclusion. In this part, this thesisproposes the policy suggestions and opinions on realization of sustainable and healthydevelopment of the economics. We should concentrate on the“market”of cities in theprocedure of urbanization in the future. Improve the productivity in rural areas andchange its traditional production mode through many comprehensive measuresessentially. Change the citizen register system, carry out the population registersystem under some circumstance; change the distribution of social welfare and citizenwelfare depending on the citizen register system.VAR model, panel data model and spatial expansion model are used in this thesis.This thesis analyzes the dynamic effect provincial difference and spatial differencebetween provinces in several angels.With the development of economics and the population move to urban, theurban-rural income gap didn’t reduce as we expected. Because of the existence ofdual economic structure, many systems that protect the urban benefit have beenstrengthened, and the subsidies the urban areas are enjoying have been beingincreasing. The development of cities makes governments much easier to invest moreproductive resource to cities. Interactively, urban-rural income gap and dual economicstructure are reason to the other. Via the analysis of provincial difference, this thesis found that there are twogroups of provinces varied. In the two groups varied through the urban-rural incomegap and industries development. Meanwhile, this thesis found a phenomenon of“ruralization”.Through the consideration of geographical factors of every province, this thesisfound that the effect of spatial factors to the urban-rural income gap varied in the yearof 2005 and 2009 considerably.