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Effects Of Rural-urban Income Gap On Economic Growth

Posted on:2013-05-31Degree:MasterType:Thesis
Country:ChinaCandidate:Y G MengFull Text:PDF
GTID:2249330371989616Subject:Quantitative Economics
Abstract/Summary:PDF Full Text Request
Since the reform and opening up in1978, Chinese economy enter a new stage after rapid developmentof more than30years.The per capital GDP in1978has increased from381yuan to25120yuan in2009.But the income gap problem has become increasingly prominent with rapid growth of the economy,especially the income gap between urban and rural residents. No matter the development ideas of "givingpriority to efficiency and giving consideration to fairness" or " paying equal attention to efficiency andfairness ", highlight the importance of the problem of fairness. Nowadays,with the widening of income gapbetween the urban and rural, studying the income distribution problem has more theoretical and realisticsignificance.Basing on the review and summary of the related literature and viewing of Chinese unique dualstructure definition, this paper calculates the Theil index reflecting the income gap between urban andrural and analyses the characteristics of phase change. Then this paper builds a mathematical modelcontaining economic growth and income distribution disparity, theoretically proving that the long-termeffects from income gap to economic growth is not fixed in the possibility and reality theory. Because therelevant data can not be aquired and the difficulties in the empirical test, empirical part does not give thethe measurement model of the physical capital,human capital,Theil index,but gives the thresholdcointegration model reflecting nonlinear regulation mechanism.From different angles,this papercorroborates the different effects from the income gap to the economic growth between urban and ruralarea in different stages.Using the national total data and constructing smooth transfer model,the empiricalpart draws the conclusion that the expanding of income gap between the urban and rural helps promoting economic growth between1978and1995.But it has adverse effects to Chinese economic growth Between1996and2009.Basing on the findings of empirical research,which confirmed Chinse current implementation of ruralpolicy, in particular, to increase farmers’ investment in human capital policies, thus easing the Chinesefarmers deep-seated poverty by improving the cultural quality of the farmers and expanding farmers’access to knowledge. Then narrowing the urban-rural income gap in China at the present stage,and breakthrough the urban-rural dual economic structure in China,promoting China’s sustained economic growthand urban-rural coordinated development.These policies are timeliness, scientific and long-term.
Keywords/Search Tags:rural-urban income gap, economic growth, tell index, smooth transition error correctionmodel
PDF Full Text Request
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