The Influence Of Urbanization To Rural-urban Income Gap In China

Social and economic development in countries around the world has been accompanied by urbanization and urban-rural income gap. Strength of rapid economic growth since reform and opening up in our country, the urbanization rate also broke through the 50% mark, people’s living standards have greatly improved, but the trend of widening income gap between urban and rural areas is also present, urban and rural income than for many years remain above 3:1. Our country present stage influenced by international market demand, export growth slowed, needs to be driven by domestic demand growth, and the expansion of urban-rural income gap is not conducive to release the spending power of rural residents, but also conducive to social harmony and stability. Last year, our country put forward the development strategy of "new type of urbanization", is put forward by 2020 resident population urbanization rate of 60%, household urbanization rate 45% target. In such a big background, the research how to accelerate the urbanization process of narrowing the income gap between urban and rural areas at the same time, the understanding of the different regional urbanization of the income gap between urban and rural areas, and then put forward the corresponding policy recommendations, has important practical significance.This paper is divided into five most:the first part is the introduction, mainly introduced the selected topic background and the topic of this article meaning and structure, and from the urbanization, the income gap between urban and rural areas and urbanization on the influence of income gap between urban and rural areas from three aspects to review and summarize of related literature at home and abroad, for the empirical analysis to lay the theory. The second part introduces the various schools of economics about income distribution gap theory, carries on the brief analysis and evaluation, and combining the theory and realistic problem in our country, discusses solutions to practical problems. Third part to the development of Chinese urbanization and urban and rural income gap change to review history, and its status quo, problems and influence factors are introduced, and analysis, and established the empirical analysis of the variables needed to choose. The fourth part is the empirical analysis; this chapter selects Thayer coefficient, population urbanization rate and GDP per capita as a variable to measure the income gap between urban and rural areas, the urbanization and economic growth. Selected the national data (1978-2013), using the VAR model to analyze the urbanization to the dynamic effect on the level of the income gap between urban and rural areas at the time, and selected provincial panel data (1997-2013), will fall into three regional features in our country, using the panel data model analysis of urbanization to urban and rural income gap in different areas of different effects. The empirical analysis results show that there exists a long-term equilibrium relationship between urbanization and urban-rural income gap, the urbanization in the short term will expand the income gap between urban and rural areas, while in the long run will narrow the income gap between urban and rural areas; And urbanization has regional heterogeneity on the influence of income gap between urban and rural areas, in the eastern region, the urbanization to narrow the income gap between urban and rural areas, and in the Midwest, urbanization process will expand the income gap between urban and rural areas.Finally, according to the empirical results on how to narrow the gap between urban and rural, accelerating the urbanization process is put forward policy recommendations, to differentiate between different parts of the urbanization process, according to different situation of different urbanization policy. From the national perspective, we will make steady progress in reforming the household registration system, break the urban and rural dual structure, on the system achieve the unification of urban and rural areas. Increase financial support for agriculture, rural areas and farmers, and improve the farmers’ income, promote the coordinated development of urban and rural areas.