An Analysis Of China’s Inter-provincial Income Differences And Its Influence Factor Based On The Way Of Space Econometrics Method

Since we brought the policy of reform and opening up into practice for30years,our chinese economic has achieved sustained, stable and rapid development, ourincome levels have been raised accordingly. But because of the differences among thefacters of history, resource endowment, development strategy, location, humancapital, etc. The unbalanced development among different areas has existed for a longtime, and the income inequality showed a trend of pull. The income gap of ruralresidents is also significant existed,it is not conducive to the construction ofharmonious society.Based on the data of rural residents’ income in each province from1989to2008,this paper studyied the trend and characteristic of the change about ruralresidents’income comprehensively, fixed the main factors which determined theincome levels through measured method, and did an empirical analysis using thespace econometrics method. The main conclusions of this paper is as follows:1.The level of rural residents’income in different province is differentsignificantly,the change of provincial differences in the study period is showed a kindof "M"shape,and the difference tends to become larger.In terms of the differencesbetween areas, the eastern region has the largest difference,and the trend is widening;the difference in western regional is less than the eastern region,and the trend is alsowidening; the difference of the central region is smallest, and the difference isdecreasing.2.Empirical results show that the educational level、 crop cultivation、 the levelof urbanization、 employment structure of each province constitutes the main factorswhich influenced the rural residents’ income. The first three factors produce positiveeffect, The fourth factor produces a negative effect; there is a significantcorrelationon ahout rural residents’ income among adjacent provinces, the spatialfixed-effects between adjacent provinces are existed significantly.One province’s ruralresidents’ income is not only affected by its own factors, but also by the level of ruralresidents’ income of neighboring regions,and the factors which affect the income ofneighboring regions.Finally, according to the research results, relative policy suggestions areprovided to improve the level of low-income provinces,and thus reduce the regional differences.