Analysis Of Income Gap Between Urban And Impact On Chongqing Industrial Structure

The basic national condition of China is a large agricultural country, thefoundation of our country’s economy is relatively weak, in order to support thedevelopment of industry we have to lose the interests of agriculture, resulting in theformation of the urban-rural dual economic development pattern. The formation ofdual economic structure causes the income gap between urban and rural areas, thelabor productivity of secondary and tertiary industry is much higher than primaryindustry, the income of rural residents is significantly lower than the urban residents.In addition, the dual economic structure makes factors of production, capital, laborand technology flowing into city. Agriculture has more opportunities and conditionsthan non-agriculture, so as the city and countryside, then resulting in the formation ofthe urban-rural income gap.More than30years of the reform and opening up, industrial structure ofChongqing has changed from “two, one, three” to “two, three, one”. Under thebackground of accelerating the pace of China’s industrialization and rapid economicgrowth, the urban and rural residents’ income has been greatly improved, but the gapbetween city and countryside has been showed up. According to the data ofChongqing statistical yearbook2012, we can accumulate that from1985to2011theper capita household income ratio of urban and rural resident increased from2.5to3.39. The gap is expanding constantly, which is bound to have a negative effect ondeveloping society and economy, building harmonious society, keeping politicalstability, so we should pay more attention to this phenomenon.Changes in the industrial structure will cause the urban-rural income gap, theadjustment of industrial structure by influencing the employment structure, theultimately caused the change of urban-rural gap. On the basis of the fruits of theformer experts, taking Chongqing as the research object, the paper uses theurban-rural income difference and ratio to measure the gap between city andcountryside. Through unit root and Co-integration test we can know that there is along-term stable relationship between three industries and the gap of urban-ruralincome. On this basis, the relationship is investigated between the two parts by usingGranger test, the result shows that they are reciprocal causation relationship.Through the analysis of the impulse response, we can know that the change of proportion of the first and tertiary industry have a negative effect on the urban-rural income g ap, increase the proportion of first and three industry can narrow the income gap between urban and rural areas. The change of the proportion of the second industry has a positive effect on income gap between urban and rural areas, with the expansion of theproportion of the second industry, income gap between urban and rural areas will alsoexpand. Study the interaction between the industrial structure and the gap ofurban-rural income, we have more in-depth understanding of the gap between urbanand rural areas. Some recommendations have been given to reduce the gap betweenthe two parts from the perspective of industrial structure.