Empirical Analysis Of Economic Growth And The Income Gap

"Winner-take-all" as human social phenomenon, seems to be a trend whichcannot be halted, and is accompanied by worsening income gap. Since the beginningof reform and opening up, Yunnan province’s economic strength has beencontinuously enhanced, the incomes of urban and rural residents have been referred toa large extent, but the urban-rural income gap is widening. In view of this situation,analyze the present situation of gap of Yunnan Province Economic Growth andurban-rural income, then the relationship between the income gap between urban andrural areas of Yunnan province and economic growth from the first from thetheoretical perspective are analyzed, and then starting from the empirical perspectiverespectively using time series data, panel data according to the specific model areanalyzed, and the spatial error model for further analysis of panel data, and all of theregression results of the comparative analysis, analysis of the relationship betweenurban and rural income gap and economic growth in Yunnan Province, combined withthe present is the relationship of the corresponding policy recommendations.Firstly, through theoretical perspectives were analyzed to study the relationshipbetween economic growth and the income gap between urban and rural. Through theanalysis of income gap between urban and rural areas have an impact on the economicgrowth through consumption, investment and human capital, and economic growththrough the two dual economic structure and capital market to influence the incomegap between urban and rural areas, the two affect each other, and the effect can bepositive or negative, the actual situation of the specific relationship between the twodepends on the level of economic development and the income gap. Then the status ofurban-rural income gap and the economic growth of Yunnan province are analyzed.Through statistical analysis, Yunnan province since the reform and opening up overallhas maintained a rapid growth rate, the average growth rate higher than the nationalaverage level; At the same time, the city of Yunnan province’s GDP has mostly been in growth, but there is a big difference in the city’s GDP, there was a significant gapand the growth rate of Yunnan province and the city; the overall income of both theoverall showed increased year by year, but there is a big difference between the city;at the same time, Yunnan province overall and states the income of absolute differencehas been expanding, but the income gap between urban and rural areas of YunnanProvince in the speed of the expansion from2005to2010in the lower. Finally,through the empirical analysis of the relationship between perspective using timeseries data, Yunnan Province general segmented time series data, panel data of statecity in Yunnan province by the time series model, fixed effect model, model andspatial error model with random effects on urban-rural income and economic growthof two of the specific analysis, analysis conclude the economic growth of Yunnanprovince have significant positive effects on the expansion of the income gap betweenurban and rural areas, and the effect size is close, relatively speaking not taking intoaccount the effect of the spatial panel data correlation of the minimum, andconsidering the effect of spatial correlation of the maximum.According to the results of this paper, is presented in this paper should beadopted to improve the speed of economic development, thus the total economicavailable for distribution to increase, and pay attention to the quality of economicdevelopment, accelerate the process of city of Yunnan province and the coordinatedregional development, reform has two yuan of household registration system andfinancial system, improve the system of redistribution in the distribution of income,promote the government macro regulation and control role and other measures toincrease the income of farmers, narrow the income gap between urban and rural areas.