Government Public Expenditure Structure On The Income Gap Between Urban And Rural Areas

Due to historical reasons, the regional development of China’s industrial developmentprocess resulted in urban and rural areas, the imbalance between the development of theindustry, the development gap between urban and rural development came to the fore,this process produces massive flows and labor in different regions of the industryagglomeration effects supply and labor supply between urban and rural areas is onereflected differences. Impact of rural-urban income due to a difference in many aspects,this paper on the structure of financial problems narrowing the income gap between urbanand rural areas under lubrication, the government how to properly deal with urban andrural public spending, and how to configure the industry, thus narrowing the income gapbetween urban and rural areas.Respectively, from the following aspects to analyze the problem:Significance of this study is that the structure of public spending needs to beappropriately adjusted government demonstration on theoretical sense, you can narrow theincome gap between urban and rural issues, and restructuring services expenditure andproduction expenditure between the rural interior, how it affects the income gap betweenurban and rural areas the. The real significance lies in the full play the guiding role of thefinancial system for urban and rural areas of capital flows, the government is committed toimproving public expenditure marginal output elements and to provide a good investmentof private capital into the environment, the process of introducing market mechanisms toreduce the urban-rural income gap in the past. In-depth study of this problem, the processof urbanization in rural areas to improve the marginal product of the elements, improvingpeople’s living standards, narrowing the income gap between urban and rural areas acrossChina for the future," middle-income trap" of theoretical and practical significance.Second, the review of the classical theory of urban-rural income gap problem,combing Dynamic home and abroad, as well as the income gap between urban and ruralareas of the process of practical problems:(1) to measure the gap between differentregions and differences;(2) the government’s public spending analysis of these threeaspects of the status quo; structural condition;(3) lubrication condition of the financialsystem in the process of China’s urban and rural development. Third, the study of the structure of the government as well as the internal structure ofurban and rural public spending between urban and rural public expenditure on economicimpact of the mechanism, respectively, from urban and rural consumption path, betweenhuman capital formation process, the marginal product of labor and capital, the urban andrural areas analysis of capital flows, such as its role in the process.Fourth, the combination of China ’s historical data, studies the role of financialdevelopment, the impact of public expenditure structure of the income gap between urbanand rural areas of the government. The influence of consumer spending, wage levels, percapita investment in fixed assets.Fifth, narrowing the income gap between urban and rural strategies.This study concluded:First, the government should increase the amount of public spending on ruralproportion, while optimizing production costs and expenditure structure configurationservice, service expenditure for investment, improve service expenditures needed humancapital formation, improve the marginal product of labor factor.Second, the government expenditure on rural productive public spending, especiallyspending on infrastructure elements of marginal output has significantly improved effect.When the government public spending on rural inadequate investment capital, themarginal product of labor are lower than the town, the capital of the rural financial systemis one way of inhalation, a one-way transfer from the countryside to the cities, while therural labor force and quality of human low-wage income from capital inflows in ruraltowns, rural areas into a vicious cycle of poverty, and some private capital in urbanovercrowding, can not find a suitable investment channels, then the flow of speculativeindustry;Thirdly, when the government increase the proportion of public expenditure in ruralareas, and human capital formation increased spending and production expenditures,enhance the marginal product of labor and capital, lubricating role of finance in ruraldevelopment began to emerge, one smoothed urban and rural capital flows, private capitalinflows opened the town ’s rural economic growth channels, but also can be successfullyachieved capital recovery, the process is a virtuous circle, not only conducive toinvestment channels for the town to find the capital to avoid the speculative bubbleforming industry, but also narrow the income gap between urban and rural areas, makingthe coordinated development of urban and rural areas. Fourth, the " urbanization " as the main path, optimize the allocation of publicexpenditure structure of government and rural governments, to develop support for therole of rural finance, a reasonable guide industrial layout, new rural construction, twoways to eliminate the income gap between urban and rural areas.