The Study On The Gap Between Urban And Rural Areas Of Anhui Province And Its Relationship With Economic Growth

The large gap between urban and rural is not only will block the growth of economy, but also will affect social harmony and stability. According to the reasons and negative effects of the gap between urban and rural areas, we give the recommends of how to narrow the gap of income between urban and rural areas, and how to make the urban and rural economy and social grow balanced at the end of the paper.Development trajectory of the urban-rural dual structure in Anhui Province showed obvious structural rigidity, the urban residents’ disposable income increased rapidly after the reform and opening up, but in contast, rural residents per capita net income have a low rate of growth, the income gap between urban and rural residents tend to be large. At the beginning of reform and opening up, central government change the focus of the work, implemented the policies of making economic construction as the center, vigorously developing the industrialization. In the process of industrialization, urbanization in Anhui Province laged behind the pace of industrialization which cause rural and agricultural increased much less than industrialization. To some extent, scissors make more capital flow into industrial area which lead to rural funds transform to urban. It cause the negative impact on the most of rural capital flow into urban and because of lack the necessary financial support economic growth in rural area become slow.Inspect of economic growth in the urban and rural area in Anhui Province of the last30years, comparing the Engel index, the Gini coefficient and other indicators, we can intuitively see that the gap between urban and rural is widening. There are many reasons leading to urban-rural development gap in Anhui Province, such as historical reasons and practical reasons; natural factors and social factors. It is not one of them leads to the situation right now, but the combined result of all the factors together. These factors with the complex formation mechanism, including natural and social factors, market forces, the gap between human resources, urban and rural development strategy trigger the gap between rural and urban becoming larger, and the paper will make a more detailed explanation about this. In the early stages of economic development, there are significant differences in initial conditions between urban and rural areas, such as natural resources, geographic location, factor endowments, infrastructure, etc.; the education level of rural labor force is generally not high, in particularly, the average level of labor skills, knowledge reserves. cultural level, the overall quality is generally lower than the average level of urban residents in these areas, which led to the per capita compensation of human capital in rural areas is far below the per capita return of the town human resources; the attention to the institutional and strategic of city’s urban and rural dividing and governing, priority to the development of industrial layout mode, the difference between the split of urban and rural household registration system, rural peasant agriculture in the economic development process has always been ignored; The state of urban-rural dual structure lead to the lack of funds which lead to the slow development of agriculture and the economy of the rural area.The scholars paid more attention on the trend of the development of urban and rural t in Anhui Province. This article will use the compared index of urban and rural residents’income to analyze the trend of urban and rural incomes, and draw the conclusion that from the reform and opening up so far the development of Anhui Province can be roughly divided into four stages and analyze and deduce the reason of the exits of every stage. The relationship between the gap between urban and rural areas and economic growth is always the debate point in the academic, the fifth part do some empirical analysis to explore that whether the economic growth will increase the gap between urban and rural areas and whether the wider the gap between urban and rural economic growth the fast the speed of economic growth. By establishing of the model for detailed analysis, introducing of the inverted U hypothesis theory and boldly predicting inverted U curve inflection point value and some corresponding test of the model, we want to get some accurate result and forecast data.According to the Anhui Statistic Yearbook, this paper which focuses on the Anhui Province, collected and collated the data of urban residents’ disposable income, the per capita net income of rural residents, household consumption, the Engel coefficient, social security, GDP, etc. to establish the time series and data model to do the empirical analysis.