| As urbanization process is propelled, the development of economic level in our nation is continuously increasing, the urban-rural people’s living level is continuously improved, number of resident is increasing simultaneously and social benefit causing by urbanization is obvious to all. According to the principle of economy, the optimal allocation of labor promoting convergence of income gap between urban and rural areas can be achieved via the free mobilization of labor. But with the development of the urbanization, the phenomenon of widening the income gap between urban and rural areas has taken place in China.The data indicate that from1978to2014, the urbanization level increased from17.92%to54.77%while the ratio of income between urban and rural areas changed from2.57/1to2.92/1and therefore a paradox between theory and reality occurs. Thus it is necessary to clarify cognition of this problem. How the urbanization process affects the income gap between urban and rural areas? Does it reduce or enlarge income gap between urban and rural areas? Why can it reduce or enlarge income gap between urban and rural areas? To this relationship, whether there is a specific optimal urbanization level to make the income gap between urban and rural areas lowest or not? If this exists, what measure should be taken to make ultimate result of urbanization to reduce the income gap between urban and rural areas? All of this problem will be answered in this article. If we can not sort out the relationship between the level of urbanization and income gap between urban and rural areas, or we even think that urbanization will increase the income gap between urban and rural areas, then it is possible to make us rise to suspicion of urbanization, which is not conducive to China’s urbanization process advance. Clarifying the relationship between both of them not only allows us to have a better understanding of the relationship between urbanization and urban-rural income gap, which related to economic theory, but also permits us to deepen our understanding of the process of urbanization and take strong commitment to urbanization road.The achievement of this thesis includes two aspects:Primarily,because the reality of our situation is not consistent with the assumptions of economic theory, this paper which draws on the basis of previous research and China’s actual conditions for the relationship between urbanization and urban-rural income gap proposes a new theoretical framework. The contents of the theoretical framework is the mechanism that the level of urbanization impact on the income gap between urban and rural can be decomposed into endogenous mechanisms and exogenous mechanisms. With the growth and the urbanization of the economy, the automatically rebalance itself to narrow the income gap between urban and rural areas which is called endogenous mechanism. With growth of the urbanization while the increasing gap between urban income and rural income as a result of the non-rationality of government institutional arrangements to which is called exogenous mechanisms. The endogenous mechanisms can be decomposed into competition mechanism, demand mechanism and scale mechanism which refers to process that the economy itself to promote the labor market by increasing the competitive level of urbanization, Shoring up the demand for agricultural products and the promoting the rural land scale of operation which can reduce the urban-rural income gap. The exogenous mechanism can be decomposed into household exogenous mechanisms, land exogenous mechanisms and urban bias exogenous mechanisms which refers to process that with growth of the urbanization as a result of the household registration system, land system and urban bias system to increase the urban-rural income disparity. The impact of urbanization on the urban-rural income gap is the result of the joint effects from the endogenous mechanisms and exogenous mechanisms. Under the joint effects from these two mechanisms, the influence of urbanization level on urban-rural income gaps will reach an equilibrium state. Furthermore, at the lower level of urbanization, the endogenous mechanisms play a leading role, while at the higher level of urbanization, because of the marginal effect of diminishing the presence of endogenous mechanisms, exogenous mechanisms play a leading role. In the role of these two mechanisms, urbanization and urban-rural income gap will show a U-shaped relationship.Secondarily, in this paper, we use the higher reliability of general propensity score matching (GPSM) to examine the relationship between urbanization and income gap between urban and rural. By this way, we try to draws the function diagram of urbanization and urban-rural income gap as data stem from empirical results and figure out optimal urbanization level. Under the determined urbanization level, the income gap between urban and rural areas is the lowest. The study result of general propensity score matching (GPSM) indicated that in the past twelve years, the relationship between urbanization level and the income gap between urban and rural areas in all regions including national, east, midland, west is U-shaped variety. As urbanization level was improved, the income gap between urban and rural areas continuously decreases to minimum and then increases. The empirical results of these four regions showing the two U-shaped relationship indicate that the new theoretical framework of this conclusion is quite robust. Further study indicates that the urbanization level turning points (optimal urbanization level) in national region, east, midland and west are61.5%,79.4%,41.5%and36.7%respectively. The study conclusion also shows that for national region, east and midland, the marginal propensity to urbanization level increase the income gap between urban and rural areas while the marginal propensity to urbanization level increases the income gap between urban and rural areas is U-shaped for west. It means the effect of urbanization level on the income gap between urban and rural areas is gradually enhanced in national region, east and midland and this effect is firstly attenuated and then enhanced in west.The dissertation’s chapters are as follows. In chapter1, the background and significance of the research were illustrated and domestic and foreign research on the status of the relationship between urbanization and urban-rural income gap was introduced.and we made a comment on the research status.Then the definition of concepts of urbanization,income and the income gap between urban and rural areas were made.According to the theses, the innovation,contribution and the logical framework map in this dissertation were proposed. In chapter2, the theoretical base for analysis relationship between urbanization level and the income gap between urban and rural areas were introduced, including the neoclassical theory, the development theory, new classical urbanization theory, the new institutional economics and urban bias theory. In chapter3, a new theoretical framework which relates to the relationship between urbanization and urban-rural income gap under certain assumptions based on the domestic actual situation was put forward, the new theoretical framework indicate that the influencing mechanism of urbanization and urban-rural income gap is decomposed into endogenous and exogenous mechanism which shows that urbanization and urban-rural income gap presents a U-shaped relationship.In the chapter4, general propensity score matching (GSPM) of calculation method, manipulating data and matching variants were demonstrated. The issue that the mechanism of effect of the urbanization level on the income gap between urban and rural areas in the national region, the east, the midland and the west was analyzed by general propensity score matching (GSPM) using provincial panel data in our country from2001to2002and the conclusion was made. In chapter5, the conclusions were summarized then the significance of the dissertation was illustrated. Finally, suggestions that can reduce the income gap between urban and rural areas with the improvement of urbanization level in two aspects of land system and city-biased policy were made for the government and the fundamental measures which can narrow the income gap between urban and rural areas from the perspective of the domicile system reformation was proposed. Finally, the future direction of researchprojects was presented.The innovations in this paper are as follows.Primary, a new theoretical framework which bases on the China’s actual situation related to the relationship between urbanization and urban-rural income gap and in the theoretical framework was not only put forward, but also the essential reasons why the improvement of urbanization level enlarges the income gap between urban and rural areas are tried to found out. The new theoretical framework which bases on the China’s actual situation contributes to perfect economical theory which related to this relationship.The ultimate result that the income gap between urban and rural areas is reduced can be achieved only if the essential reasons were found out. Secondary, the urbanization of the population is divided into different types based on whether they access to urban household registration. In the theoretical framework we present a detailed analysis of the generation mechanism of the income gap between different types of population. The different measure can be taken according to different type of population only if the different type of population is distinguished. Thirdly, the paper is able to use the method of generalized propensity score matching (GPSM) which can reduce the heterogeneity more effectively than traditional econometric methods to make an empirical test of the relationship between urbanization and urban-rural income gap.Only in this manner can the reliability of the result be improved.The main contribution of this paper are as follows:Primarily, the minimums of urbanization level when the gap between urban and rural areas in national regions, east, midland and west were calculated by general propensity score matching (GSPM). These four values have certain significance for the government to promote urbanization. Secondarily, the most essential reason why the gap between urban and rural areas was enlarged when urbanization level increased is attempted to seek from three aspects of family registration system, land system and city-biased policy in this dissertation, and therefore the recommendations were on target and the key measure of reducing the urban-rural income gap with the improvement of the urbanization in three areas of household registration system, land system, urban Bias system can be searched. Furthermore, we also try to search the basic measure to reduce the urban-rural income gap from the viewpoint of lateral economic ties reform. We believe that the development of market economy increases the growth rate of the urban floating population after the reform and opening up, but the imperfections of the fiscal system of regional government, the local government of the advantage of game and the local government of check-up system of officials’ career achievement which is based on the GDP give rise to local governments covering the local flow velocity of public services and the welfare of the population is far less than the growth rate of the urban floating population, so the local government can only restrict the flow of the city’s population to share local public services and welfare based on the household register to save local governments expenditure for public services and welfare. And so, essentially, the root cause of the problem of "high bar" of household registration system and the problem of "Imbalance of allocation of social benefits" is the imperfections of the fiscal system of regional government and the local government of check-up system of officials’career achievement and the local government of the advantage of game. Meanwhile, disequilibrium in the development of urbanization as a result of disequilibrium in economic and social development also is the important cause of the "high bar" of household registration system, so we think that the basic solution of reducing the urban-rural income gap completes the co-reform of the fiscal system of regional government, the local government of performance evaluation system and household register system. Furthermore, it promotes the reform of virtuous circle and form the reform of endogenous mechanism. |
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