A Study On The Impacts Of Urbanization On The Income Gap Between Urban And Rural Areas

With the rise of China’s economy and the speeding up of urbanization, urban and rural residents income level increased significantly, but the income gap between urban and rural areas is gradually expanding. There are many factors influencing the income gap between urban and rural areas, urbanization is one of the most important influence factors. How to speed up the urbanization process at the same time of the rapid economic development, narrow the income gap between urban and rural areas has become a focus of attention of the scholars, it is particularly important to understand the relationship between urbanization and urban-rural income gap correctly.On the basis of the research literature, first of all, I comb the related theory and concept of urbanization and urban-rural income gap,on the basis of existing literature, this paper start from analysising the present situation of urbanization and urban and rural income gap, understand the law of development of them. On the basis of the analysis of the situation, the empirical study in two parts:The first part, this paper use the time series analysis method to study the effect of urbanization on the urban and rural residents income level based on 1980-2014 data of China’s urbanization and urban and rural residents income level, and contrast the differences. In this article, the income gap between urban and rural areas consists of urban and rural residents income level, is the ratio of the two. This article starts from analysising the influence of urbanization on the urban and rural residents income level, then discusses how urbanization to affects the income gap between urban and rural areas through influencing urban and rural residents income level. Come to the conclusion: the rise of urbanization rate will raise the level of the income of urban and rural residents. The impact on the rural residents income level is heavy, but lag period is long; the impact on the urban residents income level is light, but lag period is short. This led to the uncertainty on the impact of urbanization on the income gap between urban and rural areas, the uncertainty may be due to relate only to time series data in the analysis process, ignore the spatial structure,so we prepare to use spatial econometrics model to determined relations between the two.The second part, this paper use spatial econometric methods to study the effect of urbanization on the income gap between urban and rural areas based on the 2005-2014 panel data of 31 regions in our country.First of all, this paper analysis the spatial correlation of urbanization and urban and rural income gap, and found that there is significant spatial correlation, so I choose spatial econometric model to analyze; Secondly, on the basis of the spatial correlation inspection, this paper set up different spatial econometric model and make parameter estimation; Finally, this paper use the spatial econometric model to explore the convergence of the income gap between urban and rural areas. Conclusion: 1.The development of urbanization and foreign trade dependency and space variable can effectively narrow the income gap between urban and rural areas;2.The development of GDP per capita and industrialization and third industry added value can increase the income gap between urban and rural areas; 3.There are significant ?-convergence in provincial income gap between urban and rural areas in China, that is to say that regional income gap between urban and rural areas close to the same direction, and ultimate stability to a certain level.According to the results this paper puts forward policy Suggestions on the following to improve the income gap between urban and rural areas: the first one is to guide the urbanization construction scientifically and healthy; the second one is to develop foreign trade, expand economic openness; the third one is to strengthen regional coordination development,...