The Research On Urbanization,Commercial Housing Price,and Urban&Rural Income Gap

As the fast development of economy and urbanization after open and reform policies undertaken, the income of urban&rural residents in China has been in a rapid growth. In2010, the urban per capita disposable income reached19101.44yuan, and net income of rural residents reached5919.01yuan, which were55.6and44.3times of those in1978respectively. The result shows that thick fruits have been achieved after economy system reform in China. However, the difference of income of both urban and rural residents has been accelerating. In2010, the urban per capita disposable income is almost3.23times of rural capita disposable income. Taken factors of Medicare, education, and welfare allowances, etc, into consideration, the actual differences will be more serious.This essay analyzes the differences of urban&rural income in aspects of urbanization and commercial housing price, etc, basing on domestic and overseas researches.As for theories, this essay first combs the basic theories of urbanization, real estate prices, and urban&rural income differences. Secondly, the essay analyzes causes of commercial housing price, urban&rural income differences. Lastly, it discusses influences of urban&rural income differences with a simple analytical framework. At the same time, the essay theoretically analyzes the influencing mechanism caused by housing price rising. The research shows that urbanization and the change of commercial housing price impact urban&rural income differences in two opposite directions.As for empirical analysis, the essay discusses the non-linearity relationship between urbanization, commercial housing price and urban&rural income differences. Firstly, the descriptive statistical method finds out that there exists an obvious "Down-U" phenomenon in urbanization rate and urban&rural income differences, and there exists undulatory property in stages between urban&rural income differences and commercial housing price. Secondly, the essay applies panel regression model to discuss the effecting relationship between urban&rural income differences in eastern, middle, and western part of China and urbanization rate, the relationship between urban&rural income differences and commercial house price, which confirms two-opposite-direction impact featured with influence on urban&rural income differences by the change of urbanization and commercial housing prices. At last, the essay employs panel threshold regression model to research non-linearity relationship between urbanization rate and urban&rural income differences, furthermore, it also points out that the two critical points are24.77%and43.5%for urbanization rate to transit influential mechanism of urban&rural income differences. In addition, the essay proposes some suggestions to reform household registration system and binary land system, etc for improvement of urban&rural income differences.