A Study On Basic Public Goods Supply Of China’s Urban And Rural Areas

The economy of China has made great achievements since we adopted polices ofreform and opening-up. However, the unbalance of the economy has enlarged thedevelopment gap between different regions, cites and villages, industry and agriculture.The rural sector is not only lag behind the urban sector in the level of economicdevelopment, the gap between city departments are greater in public utilities. The gap ofpublic production supply between urban and rural areas and the lack of basic publicgoods supply in rural areas play a vital and irreplaceable role in the coordinateddevelopment of urban and rural economy development. In order to gradually narrow thegap of urban and rural people’s living standards and the level of social welfare.18thNational Congress of the Communist Party of China proposed to achieve theequalization of basic public services between urban and rural areas in2020, as requestedstarting from the actual level of economic development and according to the principle,which the government guarantees basic needs and markets provide diversified choices.Under the constraints of a certain level of economic development, the way how toconfigure urban and rural basic public goods more efficiently, how to select the priorityof the basic public goods becomes a key issue. Based on the theory of public dynamiceconomy, this paper tries to study on the basic public production supply configurationsituation and reasons between rural and urban areas from a qualitative angle.Then usingthe2596data of the31provinces from2004to2010to establish a fixed effects panelvariable intercept model to analysis the per capita income effect from a quantitativeangels. Putting the per-student compulsory education, the fixed asset investment, thehealth manpower of beds per ten thousand populations and the number of old-ageinsurance as the core variables, and putting urbanization rate as control variables,divided into urban and rural areas, eastern, central and western regions. Finally, toachieve the recommendations how to integrate the urban and rural basic public policyfrom four angels including urban and rural basic public goods supply systemarrangements, supply subject selection, supply capacity and supply efficiency.The conclusions show: the residents’ basic public supply varies by regions and byurban and rural. From the return rate of investment of basic public goods, the priorityfor rural basic public goods: compulsory education, infrastructure, social security andpublic health. Priority for urban basic public goods: compulsory education, social security, infrastructure, and public health. The supply for basic public products are alsodifferent with the levels of area’s economic development, For the eastern urbanresidents, the priority basic public goods: compulsory education, social security,investment in infrastructure, public health, For the eastern rural residents、the centraland west urban residents, the priority basic public goods: compulsory education,investment in infrastructure, social security, public health. For the central and west ruralresidents, the priority basic public goods: compulsory education, investment ininfrastructure, public health care Health and Social Security.