The Study Of The Relationship Between Urban-rural Income Gap And Economic Growth In Hunan Province

Since the Chinese economic reform, the economic development of Hunan Province is on full speed.The GDP of it has grown to be the first class of China, which makes Hunan be one of the most important provinces in central. In the same time, the per capita disposable income of both urban and rural residents is also rising. However, urban-rural income gap is gradually widened. In this paper, the relationship between urban and rural income and economic growth of Hunan province will be divided into five stages for discussing. To make a preliminary understanding of the relationship and disciplines between the two aspects and find the trend of inverted U-shape. And then from the angles of the whole and some region of Hunan province (such as eastern Hunan, western Hunan, middle of Hunan) the author verified the relationship between the two aspects. The "inverted U" curve verification results meet the Kuznets inverted U theory, and here appears a turning point, but in the future it is likely to rebound. The turning point of eastern regions appears most early, this is because the eastern regions benefit from Chang-Zhu-Tan integration. By use of unit root test, Johansen co-integration test and Grainger test, the author analyzes the relationship between economic growth from 1978 to 2014 and rural-urban income gap. The results show that in Hunan Province There is a long-term stable relationship between the income gap and economic growth both urban and rural areas, the income gap is the Grainger reason of economic growth. And the two is a one-way relationship. After short-period adjustment, Hunan urban-rural income gap will continue to expand over a longer period of time. For now Hunan is still in the first phase of Kuznets curve, that is, the expansion phase.