The Research Of Income Gap Between Urban And Rural Areas At The Process Of Urbanization In Liaoning Province

Since China’s reform and opening up, with the rapid development of urbanization levelin Liaoning province, urban-rural income gap is increasingly prominent. How to promote thedevelopment of urbanization effectively reduce the income gap between urban and ruralareas, and how to achieve these two sides, obtain steady and fast economic growth, this is theproblem that current research should focus on. Based on the research literature about theanalysis of urbanization and urban-rural income gap，the text discusses the characteristics ofthe historical evolution and development of urbanization, and strive to explore efficient wayof narrowing the income gap between urban and rural areas at the time of the development ofurbanization. This above study has important theoretical and practical significance on theeconomic development of Liaoning province.This passage researches on the income disparity between rural and urban areas inLiaoning province under the framework of urbanization development. It also makes relevantpolicy propose on how to steadily promote a new-type urbanization with the decrease ofincome disparity. This paper takes related theories as the base and uses econometric as a tool.It also chooses dual contrast coefficient, urban population proportion,the proportionurbanization development of Liaoning Province. It analyses the effects of these fourindicators on the income disparity of Liaoning Province, based on VAR model and usesdynamic econometrics of co-integration analysis、Granger causality、pulse effect andvariance decomposition analysis. Through those methods, it evaluates and analyses incomedisparity between urban and rural areas in Liaoning Province from1978to2012.The resultsshows that there is a single long-term and dynamic balance between urban and rural areas,aswell as a long-term consistency from1978to2012.Moreover, it reflects those followingfacts: the industrialization rate has the strongest effect on income disparity, urban populationand urban-rural dual coefficient have a positive correlation with income disparity in a short period. At last,according to our nation’s development requirements of new-typeurbanization, the text makes policy proposal on how to narrow the income gap betweenurban and rural areas.