Narrow The Gap Between The Income Of Urban And Rural Residents In Shandong Province Financial Strategies Research

With the economic development, the income of urban and rural residents in China has increased rapidly. The per capita disposable income of urban residents had reached to 29222 yuan and the rural per capita disposable income had reached to 11882 yuan, which have been almost three times of that in 2002. These data shows that the urban and rural residents in China have shared the achievements of China’s rapid economic growth in a certain extent. However, the income gap between the urban and rural residents has gradually enlarged with the highly-developed economy. According to the material from the bureau of statistics in Shandong, the ratio of the per capita nominal income in 2002 was 2.58:1,while it was 2.66:1 in 2013. This indicated that the income gap between the urban and rural residents has become gradually enlarged.Currently, social issues caused by the income gap, such as economic and political problems, have got great attention from all walks of life. For a long time, complicated factors have caused the enlarging income gap. Diminishing the gap between the income of urban and rural residents is an important and difficult task. This report is focused on the reasons and the financial strategies.Based on statistical analysis of data, this essay has divided income gap between urban and rural area since Reform and Opening up into four stages, comparing income gap between urban and rural area in different cities, describing the cause of urban-rural income gap. Using regression analysis to investigate the motivations of urban-rural income gap, a regression model has been established. Through the calculation of the software, urban-rural income gap has been influenced by GDP per capita, finance for agriculture, the proportion of rural employed population. According to the empirical analysis and conclusion, in this essay, we will describe the present situation that urban-rural income gap has become wider and wider, and figure out the basic reason foe this phenomenon.Finally, according to the causes of income gap between urban and rural area, combined with advanced experience to narrow the income gap of urban-rural area in Jiangsu, Zhejiang, Guangdong province, this essay has come up with some useful suggestions in terms of the rational allocation of resources, the increase in the fiscal expenditure on agriculture, the improve of the tax system and education.The most innovative point of this essay is that it has analyzed the present situation and future trend of income gap between urban and rural areas in Shandong province from the provincial level,according to the historical data, together with the use of the multiple regression model which conducts the econometric analysis of the effect of the explanatory variables, such as GDP per capita, fiscal transfer expenditure on agriculture, level of education. Another innovation of this essay is that it has provided the final decisions of Shangdong province with the empirical basis, according to the advanced analysis and measures of Jiangsu, Zhejiang, Guangdong province.