The Research Of The Relationship Between Residents’ Income In Shanxi Province And Non-coal Industry Development

This paper takes non-coal industry as an entry point to explore the income of urbanand rural residents in Shanxi. The article mainly divides into the following sections:The first part focuses on the overall income of the residents of the province, usingdescriptive statistics and state space model to explore the relationship between incomeand the coal industry, non-coal industries. Grasp the role of the coal industry andnon-coal industries from overall level: the rapid development of the coal industry dosenot bring a significant increase in income, and the non-coal industry is the main way tostimulate the increasing of province’s income.The second part is the focus of this study. After determining the non-coal industriesare the main way to increase residents’ income, they will be broken down into primaryindustry, the non-coal industry in secondary industry and tertiary industry. Meanwhile,the factors affecting the income of urban residents and rural residents’ income aredifferent for the two state space models: the urban model involves "the non-coalindustry in secondary industry "," tertiary industry " and " total fiscal revenue "; ruralmodel involves "the non-coal industry in secondary industry ","primary industry" and "peasants’ household productive assets ". State space model can bring dynamic changesfor economic conditions. It can reflect the non-coal industry’s influence on incomefluctuations over time. The regression results draw two conclusions: the tertiary industryis the main reason affecting the income of urban residents; primary industry and thenon-coal industry in secondary industry have equivalent effect on the income of ruralresidents.The third part, according to the findings, put forward specific proposals for thedifferent characteristics of urban and rural areas: ensuring the development of the coalindustry, the city should vigorously develop the tertiary industry to raise income levels;rural areas should ensure the status of traditional primary industry, and develop non-coalindustries in the secondary sector, increasing the investment in productive assets.