Study On The Influence Factors Of Urban-Rural Income Difference Of Jiangxi Province

Jiangxi, as an under-developed province mainly depending on agriculture, and it is also a very typical agriculture province in the middle area of China. After the reform and opening up, the rapid economic growth, the income of urban and rural residents has been greatly improved. But, the income of urban residents is growing much faster than the growth rate of income of rural residents, income gap between urban and rural areas continue to exist and gradually widening. Therefore, it is of great importance to research influence elements from many points, to enrich the research on income gap between urban and rural areas of Jiangxi Province. Taking Jiangxi Province as an example to study the problem of income gap between urban and rural residents, It is a very meaningful and practical research, which will help to harmonize the development of city and rural areas.On the reference of other research results, through regional economics and econometrics and economic development, this paper discusses change features of the resident income,and empirical analysis the various factors affecting the income gap between urban and rural areas of Jiangxi province,since the reform and opening up. According to the empirical results, this paper puts forward some suggestions for the problem of balancing income gap between city rural areas in Jiangxi province. This paper tries to analyze the different elements which expand the income gap Kuznets hypothesis, dual economy structure and urban bias thesis.The following are the main contents and conclusions:The first chapter, which is concerned with the study background, content and the current studies of the urban-rural income gap. Meanwhile, it also deals with the study method, ways of thinking and innovative points of this paper.The second chapter is mainly introduced the related theory,Including Kuznets hypothesis, dual economy structure and urban bias thesis, Gini index, Theil index and ratio method.After these introductions, to lay the foundation for the writing of the article.The third chapter is analysis of the current situation of the income gap between urban and rural areas of Jiangxi Province. It finds that:since the reform and opening up, the income of urban and rural residents has been growing quick, urban residents’ income growth faster growth in rural income rate, so income gap between urban and rural area become more and more expand. With the expansion of income gap between urban and rural areas, urban and rural residents’ consumption and living level disparity is more and more. Meanwhile, the problems of farmers and rural and agriculture become further intensified.The four chapter empirical study on the influencing factors of the income gap between urban and rural areas of Jiangxi Province, which is the most important part of the article.which include81counties from year1989to2011, to study the influencing factors of urban-rural income difference. By using the hybrid OLS, fixed effects OLS, random effects OLS, and Arellano-Bond GMM estimation method to analyze the model,and use of packet estimation methods are robust test. First, Jiangxi Province over the past few years the income gap between urban and rural areas continue to expand. Second, The development of education, the implementation of the newer rural cooperative medical and retirement security and other social security policy do not reduce the income difference between urban and rural areas, but to further expand the urban-rural income difference. Third, Economic geography has a significant impact on narrowing the income difference, such as whether a county belongs to the Poyang Lake Ecological Economic Zone or not. Forth, To increase the farmers’cultivated land per capita, irrigated area per capita and sown area per capita of farm crops that can notably decrease the urban-rural income difference.Fifth, power of agricultural machinery per capita is positively related with urban-rural income difference, because it reflected the level of agricultural modernization. Our result shows that the level of agricultural modernization does not necessarily reduce the income urban-rural income difference. Finally, the other variables, for example, Per capita GDP, per capita, the local finance income, per capita consumption total and per capita financial loans is uncertain.The five chapter is introduction the conclusion and suggestions.including improve agricultural infrastructure to promote stable development of agriculture, increase investment rural education to improve rural human capital accumulation, encourages the united farmers to enhance the anti-risk ability of farmers, the development of characteristic agriculture to increase farmers’ income, speed up the urbanization process to promoting the coordinated development of urban and rural areas.