The Empirical Analysis On The Relationship Between Urbanization And Rural Residents Income

"The three agricultural" problems have always been the core of the party and the country’s most concerned social issues. According to the report spirit of The18th National Congress of the Communist Party of China, urbanization in the future will not only become the important carrier of building a well-off society in China, but also leverage the most potential of domestic demand. And the process of urbanization will bring what kind of influence on the net income of rural residents is the most important topic that we need to focus on. It will affect social harmony and national stability. Traditional literatures always use urbanization rate as an indicator to measure the level of urbanization, but in the true sense, urbanization is a comprehensive development process. We should not only use urban population or the proportion of non-agricultural population as the single evaluation criterion. To make up the defects of measure index of urbanization, this paper tries to use the principal component analysis to build a comprehensive index as a quality index of urbanization from the population, communication, transportation, education, health, and economic aspects, and rank the urbanization level of the provinces.At first, this paper applies principal component analysis10indicators of China’s31provinces, cities and autonomous regions in2005-2012to build a comprehensive index of urbanization. And rank the urbanization level of every province in the comprehensive urbanization level sort every year. Then calculate the rural residents income inequality Concentration Index related to comprehensive urbanization level. Then use the cointegration test and error correction based on panel data model to the relationship between the comprehensive urbanization level from2005to2012and the net income of rural residents to make a further empirical analysis. Finally, puts forward several opinions according to the empirical analysis conclusion,.