An Empirical Study Of The Correlation Between Urbanization And Urban-rural Income Gap In Zhejiang Province

Since the reform and opening up, our city construction continues to accelerate,people’s income grows rapidly, however, the income gap between urban and ruralareas are showing a growing trend. The urban-rural income gap has become animportant factor restricting China economics operation, is going to be the obstacles ofsocialist modernization. How to deal with various problems in the process of cityconstruction, how to coordinate urban and rural development, how to curb thewidening income gap, is significant to us.For it is in the primary stage of Socialism, our city construction is a must.Therefore, this paper aims to explore the relationship between the city constructionand urban-rural income gap, and whether the rapid growth will lead to the morewidening gap between the rich and the poor.At first, investigate different regions of Zhejiang province about the city leveland the income gap, so as to provide objective evidence for the proposed scheme.Then, based on the qualitative research, by using the method of factor analysis, we’llchoose20factors to study about the city level.In order to explore the relationship between the city level and the income gap,we will take the Co-integration Analysis, Granger causality test and other methods to discuss the income gap between urban and rural areas of Zhejiang Province in theprocess of city construction.The results showed that, the influence is mainly due to the urbanizationconstruction, and the income gap between urban and rural areas is not much impacton the urbanization construction. In the short term, urbanization level will expandthe income gap between urban and rural areas; however, in the long term,urbanization level will shorten the income gap between urban and rural areas.Therefore, we can promote the city construction, accelerate the construction of smalltowns and the process of urban-rural integration; at the same time, we also canpromote the transfer of rural surplus labor force, improve farmers’ education, thus, wewill improve the living standard of farmers, narrow the income gap between urbanand rural areas, and promote the harmonious development of society.