Research On Influence Of The Urbanization To Income Gap Between Urban And Rural Areain Liaoning Province

Since China’s reform and opening up, the Liaoning Province obtained the rapid development of economy, people’s living standards greatly improved, but with the development of economy, urban and rural residents of the trend of widening income gap also appeared, this means that the unfair of urban and rural income distribution should be has drawn great attention of government and society.There are many factors that can influence the income gap between urban and rural areas, the urbanization is one of very important. The 18 th National Congress of the Communist Party of China points out that the urbanization is laden with promoting the important task of China’s economic development and social transformation, is one of the important impetus, upgrade for building China’s economy is an important breakthrough, push forward the reform is an important platform ensuring and improving people’s livelihood.In the process of urbanization, the income gap between urban and rural areas is an important indicator to measure the quality of urbanization, as a result, the income gap between urban and rural areas should be a need to seriously study the subject.This paper firstly discusses the background, significance and literature review study abroad,describes the theoretical basis of the paper. Theory used in this article are mainly regional economic theory, urban growth theory and the "inverted-U theory" Kuznets growth phase. Next,this article discusses the current situation characterized by urbanization, Liaoning Province, the impact on the income gap between urban and rural areas, and analyzes the impact of the income gap between urban and rural urbanization path. In the empirical analysis phase, through the unit root test, cointegration and granger causality test, getting the following conclusions: the level of urbanization, the level of financial support for agriculture and human capital investment and the income gap between urban and rural areas is negatively correlated, while urban bias of government expenditure and economic growth alone behavior and the income gap between urban and rural areas is a positive correlation between. Finally, through the empirical results of the analysis, the relevant policy recommendations to address the income gap between urban and rural issues and promote the expansion of Liaoning Province, the construction of new towns in Liaoning Province. Including the reform of the household registration system, the new orderly urbanization; to increase financial support for agriculture, building a new socialist countryside; increase investment in education, improve the level of human capital; reduce urban bias of government expenditure to achieve the equalization of basic public services in urban and rural areas;play the macro-control functions of government, the coordinated development of urban and rural.