The Research Of Economic Growth, Inflation And The Income Gap Between Urban And Rural Areas In Hebei

It has been the direction of Hebei province and an important goal whichlocal government policies strive to narrow the gap between urban and rural areas, speed upthe construction of the integration of urban and rural areas and build a harmonious society anda new generation. There has a far-reaching significance in Hebei province to research therelationship among them. In this paper, I use the measurement method to model and analysis.The model estimation results are:（1）Impulse response analysis shows that income gapbetween urban and rural areas can cause inflation in the short terms, but this positive effectquickly turned into the negative response, that is, the expanding income gap urban and ruralareas reduces inflation. Conversely, inflation is helpful to improve the general level ofprices in the short terms, then cause the increasing the income of farmers, which narrow thegap between urban and rural areas in a certain extent, but in the long term, inflation is boundto damage the interests of farmers. According to the obtained data, in recent30years,economic growth and inflation deflation appear in the same time, which is has a closerelationship with the relative supply surplus and the deficiency of effective demand. Wideninggap between urban and rural incomes in the short term can promote economic growth, but theexpanding trend of gap will lead to various social problems. Economic growth isonly temporary.（2）The variance decomposition shows that the influence among economicgrowth, inflation and the increasing income gap between urban and rural is becomingenlarging.（3）The panel model shows that there is no Significant causal relationship betweeneconomic growth and income increase. But economic growth can have a direct impacton inflation, and then indirectly affect the income gap between urban and rural areas.The interaction mechanism between the three is very complex. The Hebei authoritiesshould according to the specific circumstances of the local efforts to coordinate therelationship among them, then find a basic balance, where it is to pursuit of stable economicgrowth, but also can ensure the stability and control between the urban and ruralincome gap in prices.