The Research On Urbanization And Urban Bias How To Effect The Income Gap Between Urban And Rural Areas

Urbanization is the development of social productive forces and the social mode ofproduction to some extent, which caused the whole process of lifestyle, economic andsocial change, and the only way to achieve social and economic development of thecountry. China’s special national condition decides the way of urbanization that has itsdistinctive features. Since the Reform and Opening up, China’s widening income gapbetween urban and rural areas has become a major destabilizing factor affectingharmonious society along with the rapid economic growth. Therefore, it is particularlyimportant to grasp the relationship between urbanization and income gap between urbanand rural areas.This paper carries out the analysis and study of the process of urbanization in theincome gap between urban and rural issues, drawing on past experience and researchresults, the basis of the relevant theories of macroeconomics, institutional economics,econometrics, basing on research methods of normative and empirical analysis, ofqualitative and quantitative research, of a combination of system and focus. Firstly, theuse of standardized analytical methods, an overview of the status of urbanization andurban-rural income gap of systematic exposition, and proposed urbanization of ruralincome gap mechanism and models. Secondly, the use of empirical analysis onurbanization and urban-rural income gap, especially in urban and rural income gapbiased policy relations with Granger causality test. The results show that urbanizationplays an impetus on the income gap between urban and rural, but urban bias policy is oneof the important factors causing widening income gap between urban and rural areas.Finally, it’s formed my own conclusions according to the aforementioned theory andresults. I have some advices about the widening income gap between urban and ruralareas, such as coordinate relationship of urbanization and economic growth, balanceurban and rural development, accelerate the construction of new socialist rural areas.