Researching The Inverted U-shaped Curve Between Chinese Urban-rural Income Inequality And The Urbanization Rate

This paper mainly studies the urbanization rate has influence on urban and rural income gap. economic development throughout the history of China, the income gap between urban and rural in China continues to increase, urban per capita disposable income ratio increased from 1.71:1 in1995 to 3.13:1 in 2011,2012 years of China’s urban and rural income difference absolute value 20 times, at the same time, the urbanization rate has been on the increase, increased from 0.29 in 1995 to 0.53 in 2012, the urbanization has entered an important period of strategic transition,the urban-rural income gap expanding China already is not conducive to the sustainable and healthy economic development, the academic circles generally through the econometric tests indicate that there are significant relationship between the income gap between urban and rural areas and urbanization rate, and the rate of urbanization problem how to the influence of income gap between urban and rural areas has not been unanimous conclusion.Based on this, this article take the domestic and foreign research as the foundation, in view of the urbanization rate is the problem how to affect the income gap between urban and rural areas, in theory, established the income gap between urban and rural areas and urbanization rate among the two economic theory model and theoretical analysis, the empirical test in the empirical use Stata software for Econometric model.Theoretical part, this article assumes the entire social system of the urban and rural areas constitute the two departments to Theil index as a measure of China’s urban-rural income gap index, Theil index is defined on the basis of the establishment of the income gap between urban and rural areas and the urbanization rate of economic relations between the two theoretical model,based on the principle of strict mathematical derivation of the derivative and combining economic theory theoretical analysis,the process of urbanization in rural population into urban-rural income gap between the country’s urban population and urbanization rate both caused the relationship is inverted “U” conclusions curvilinear relationship,the use of “rational economic man “ the pursuit of individual utility maximization theory of inverted “U” set forth the reasons for the conclusion, then use a graphical simulation of the inverted “U” conclusion can be tested, and then briefly original urban-rural income gap conclusion to expand the process of urbanization of the rural population into urban-rural income gap between the urban population and urbanization rate caused by inverted “U” position and shape of the graphic changes,urbanization rate and the inflection point when inverted “U” and the emergence of the turning point is calculated. Finally, conclusions comprehensive elaboration.The empirical part, time series data integration in 1995-2012 in our country 31 provinces and autonomous regions nationwide with the panel data of Eastern, central, data points, Western and national separately, based on the income gap between urban and rural areas in China and the rate of urbanization economic theory model, the calculated value of the empirical analysis of the Theil index with the urbanization rate value, analysis, central, Western and eastern part of the country in the process of urbanization of rural population to urban population caused by the income gap between urban and rural areas and urbanization rate was inverted "U" curve "relationship, and pour the urbanization rate U" inflection point is respectively 59.6%, 47.8%, 38.2% and 56.3%, the results are consistent with the conclusions from theoretical analysis; on this basis, put forward the corresponding economic and fiscal policy.In this paper, the theoretical model and the empirical measurement inspection that the income gap between urban and rural China and the urbanization rate, the relationship between the two inverted "U" curve, the directions of new urbanization development path from the long-term direction to help narrow the income gap between urban and rural areas of our country, is conducive to economic stability and sustainable and healthy development.