The Dynamic Effects Of Urbanization On The Income Gap Between Urban And Rural Residents

Since 1978,China's economy has made considerable progress in 2010,the total GDP catch up with Japan,in one fell swoop into the world's second largest economy,China's GDP in 2014 more than 10 trillion US dollars,while Japan was less than five Trillion,is twice as much as Japan,2015 to 2016 the first two quarters of this gap continues to expand.At the same time,China's GDP growth rate gradually declined,the living standards of urban and rural residents have improved significantly,but the income gap between urban and rural residents has not been reduced.With the acceleration of urbanization,the income gap between urban and rural areas has been widened,and the urban-rural real income ratio in 2006 is greater than 3: 1,and the gap has never been improved.In the long run,the rural and urban residents income gap is too large,not only will not be conducive to long-term social stability,but also to the health of the economy has serious consequences for sustainability.It is very important to study the dynamic effect of urbanization level on the income gap between urban and rural residents in China during the period when the Chinese economy enters the new normal state of shift and deceleration and the great transition period of the world economy.It is very important to realize the coordinated development of rural economy and urban economy.Guiding significance.Based on the existing theories,this paper uses the data of urbanization level,social security expenditure level,income gap between rural and urban residents,combining theoretical analysis and empirical analysis,taking the urbanization level as the core variable,the level of social security expenditure As the control variable,the dynamic effects of the urbanization level on the income gap between urban and rural residents were investigated by introducing VAR and VEC models.The empirical results show that the level of urbanization and the level of social security expenditure are the important factors that affect the income gap between urban and rural areas in China,and they all have the effect of reducing the income gap between rural and urban residents.In contrast,The income gap between rural and urban residents is more effective,but their combined effect has the effect of widening the gap,whichmay be related to the incoordination between the urbanization process and the development of social security expenditure system in our country.At the same time,the author analyzes the two driving forces of urbanization-industrial structure,fiscal expenditure,and the contribution to urbanization level,so as to reduce the income gap between urban and rural residents through the transmission mechanism of urbanization.Finally,according to the research results,the government can reduce the income gap between urban and rural residents by accelerating the process of urbanization and establishing a social security system covering the whole society.At the same time,it can promote the high quality development of urbanization in China from the aspects of deepening the industrial structure,optimizing the structure of financial expenditure and establishing a new household registration system;and establishing a nationwide modernization from the aspects of perfecting the minimum living security system,new type of old-age insurance system and new medical system Social Security System.