Empirical Research Of Urban-rural Income Disparity On Economy Growth In Central Region

The relationship between income distribution and economic growth has always been the focus of scholars.This paper select the central area as the study region to analyze.Firstly review the related theory about income distribution and economy growth,then study the domestic and foreign literature.Based on the data of the past years and introduce the circumstances of the income disparity between urban and rural residents in different provinces and cities in the central part of China.Finally,built the linear model and nonlinear model under the consideration of Cobb-Douglas production function and Hansen's threshold model.During the empirical analysis,this paper analyzes the relationship between urban-rural income disparity and economy growth from the linear perspective and nonlinear perspective,compared with the analysis in three kinds of situation.The empirical results show that,the absolute income disparity between urban and rural residents in central China has increased year by year,while the relative disparity firstly expands and then reduces.Using the panel co-integration model in the linear perspective,we found that expanding income disparity has a negative effect on economic growth.Using the panel threshold model in the nonlinear perspective,we found that in the whole region,expanding income disparity plays a negative role in economic growth as from the analyze in linear perspective,with the continued expansion of this disparity,and after crossing the threshold,the negative effect will be stronger.The region,which has the higher level of economy development,will have a stronger negative effect.What's more,the period which has the higher level of economy development,will reach the stage that urge the effect transform from positive into negative quicker than the period has the lower level.Specially,the expanding income disparity plays a positive role in economic growth in underdeveloped region,while with the continued expansion of this disparity,and after crossing the threshold,it will has a significant adverse effect on economic growth.