The Research On The Relationship Between The Urban-Rural Income Gap And The Economic Growth In Guangdong

Thirty years of reform and opening up, China’s economy has achieved unprecedented development and created a miracle of economic development. The GDP has increased from 3650.2 billion yuan in 1978 to 53.3 trillion yuan in 2012, an average annual growth rate is up to 9.8 percent, much higher than the world average growth rate of 3% over the same period. However, the income gap between urban and rural residents continued to expand, urban-rural income ratio has increased from 2.57 in 1978 to 3.10 in 2012. Imbalance between urban and rural income gap has become an impact on China’s economic and social sustainable development and building a moderately prosperous society in a hot issue.Along with the rapid increase in the rapid economic growth and per capita GDP, the income gap between urban and rural areas has become increasingly prominent issue of enlargement in Guangdong.This paper calculated the 1978-2012 Guangdong urban-rural income ratio, and then get Trends Guangdong urban-rural income gap. The results show that changes in 1978-2012 in Guangdong urban-rural income gap has experienced rapid decline in first, and then into a longer rise, followed by a brief decline in the past few years, and finally rise up to the present the steady decrease slightly. From the absolute value of the urban-rural income ratio of view, the income gap between urban and rural areas in Guangdong in 2012, compared with the early years of reform and opening up has increased significantly, far exceeding the international default urban-rural income ratio cordon 2, showing urban-rural income gap Guangdong situation more grim. Secondly, we also calculated the 2005-2012 Guangdong overall income gap Theil index, and is divided into inner city and rural income gap between the interior and the urban and rural areas Theil index Theil index. Estimates showed that the income gap between urban and rural areas in Guangdong 2005-2012 Theil index of household income in the contribution rate remained at around 20%, the contribution of the income gap within rural showing an increasing trend, the contribution of urban income gap is a significant decrease trend. Finally, in order to more fully reflect the relationship between the income gap between urban and rural areas of Guangdong and economic growth, we use a quadratic equation in the form of the relationship between the income gap between urban and rural areas of Guangdong and economic growth were fitted, empirical results show that, Relations Guangdong income gap between urban and economic growth in the form of showing "inverted U" shaped curve that as the economy grows, gradually widening the income gap between urban and rural areas, when the economy develops to a certain stage, the income gap between urban and rural areas also began to shrink.