Empirical Study On Impact Of Industrial Structure On Income Gap Between Urban And Rural Areas

Research results of scholars at home and abroad show that the optimization and upgrading of industrial structure has a strong effect on the income gap between urban and rural areas, but, as the difference of study area and methods, results were significantly different,. This article in combing the literature found that the current domestic research focus on the upgrading of industrial structure’s impact on the income gap between urban and rural areas, but, upgrading of industrial structure is only one part of the industrial structure adjustment of the industrial structure, rationalization of industrial structure is the other part. So, when studying industrial structure’s effect on the income gap between urban and rural areas., this article attempts to from angles of upgrading of industrial structure and rationalization of industrial structure.First of all, in order to find the shortcomings of existing studies and lay a theoretical foundation for later research, we combed the relevant theory and literature; The second, this article analyses the situation of upgrading of industrial structure, rationalization of industrial structure and the income gap between urban and rural areas form the angle of fixed quantity; the last, this article, using VAR model, studied the relationship of upgrading of industrial structure, rationalization of industrial structure and the income gap between urban and rural areas, cointegration test found that the income gap between urban and rural areas have a long-term stable equilibrium relationship with upgrading of industrial structure and rationalization of industrial structure, and can control the income gap, when ratio of the third industry and second industry output value increased by 1%, the income gap between urban and rural areas decreases 9.68%, when ratio of the added value of non-agricultural industries increased by 1%, the income gap between urban and rural areas decreases 0.04%,when the structure deviation increased by 1%, the income gap between urban and rural areas decreases 0.89%,impulse response function shows upgrading of industrial structure and rationalization of industrial structure both expand the income gap between urban and rural areas in the short term, variance decomposition results show that the income gap between urban and rural areas greatly influenced by their own and ratio of the third industry and second industry output value, the added value of the second industry and third industry share of GDP,the structure deviation have a little impact on the income gap between urban and rural areas.Based on the empirical research conclusion, this article advices, in order to narrow income gap between urban and rural areas, we should continue to push forward industrialization, develop the third industry, transfer rural surplus labor, make sure urban and rural social security equalization.