Research On The Income Gap Between Urban And Rural Areas And Countermeasures Of Liaoning Province

With the rapid development of the economy, if you ignore the problem of income inequality, it will probably lead to social unrest, which will in turn affect the speed and quality of economic growth. Liaoning province is the famous trdational industrial base of China, which is a large industrial province and a major agricultural province. Over these years, gross domestic products of Liaoning province have been ranked the top ten, occupying a very important position in China. But at the same time, the income gap between urban and rural residents is also one of the most important problems in the economic development of Liaoning province.By using relevant statistical data,this paper reveals the dynamic changes and the evolution of the income gap between urban and rural residents of the 14 areas subordinate to Liaoning Province.To test the global spatial correlation of the income gap between urban and rural residents of 14 areas subordinate to Liaoning Province, the results show that: the global spatial correlations of income gap between urban and rural residents significantly exist in Shenyang, Dalian, Anshan, Fushun, Benxi, Dandong, Jinzhou, Yingkou, Fuxin, Liaoyang, Panjin, Tieling, Chaoyang and Huludao.As Space system GMM estimates, AR(1) test, AR(2) test and Hansen test show that space dynamic panel model does not have the problem of set, the instrumental variable is effective. The estimation results show that the time lag and spatial lag terms exert a significantly positive effect to the current income gap between urban and rural residents, which is a significant feature of the income gap between urban and rural residents of Liaoning Province. The estimation results also show that the natural difference in productivity of agriculture and industry, the ratio of capital investment in urban and rural areas and the level of economic development have positive effects on the income gap between urban and rural residents of Shenyang, Dalian, Anshan, Fushun, Benxi, Dandong, Jinzhou, Yingkou, Fuxin, Liaoyang, Panjin, Tieling, Chaoyang and Huludao, and the financial support on 14 regions have significantly negative effects. The square term of economic development is not significant to the income gap between urban and rural residents, it means that to the 14 areas subordinate to Liaoning Province, the inverted "U" shape curve hypothesis of Kuznets does not hold.