Industrial Agglomeration,Urbanization And Urban-rural Income Gap

Since the reform and opening up,the continuing urban-rural income gap has had a relatively unfavorable impact on social stability and sustainable economic growth.Therefore,studying the causes and influencing factors of the urban-rural income gap in China will help find a way to narrow the urban-rural income gap.It is of great significance for the overall planning of urban and rural development.On the basis of reviewing and summarizing the relevant literatures,this paper builds the Spatial Durbin Model based on panel data of 31 provinces and cities from 2000 to 2016,to test how industrial agglomeration and urbanization influence urban-rural income gap on the basis of controlling other relevant variables.The results show that:(1)The spatial distribution of urban and rural income gaps in China presents a certain spatial agglomeration phenomenon.(2)The impact of industrial agglomeration on urban-rural income gap is a "Positive U" relationship;the impact of urbanization on urban-rural income gap is an "Inverted U" relationship;industrial agglomeration and urbanization have spatial spillover effects on urban-rural income gaps in other relevant regions.(3)Other control variables such as population density,social investment level,and economic openness,and other factors will also cause changes in urban and rural income gap.Finally,according to the empirical analysis conclusions,it proposes policy recommendations to narrow the urban-rural income gap.(1)The government should focus on areas with high income disparities between urban and rural areas to prevent spatial spillovers from causing an increase in the urban-rural income gap of the surrounding areas.(2)Accelerate the development and optimization of urban industries;Focus on nurturing competitive industries in the region,and achieve the optimal scale of industrial agglomeration as early as possible.It is also necessary to actively break down the institutional obstacles to the horizontal and vertical movements of workers,to reduce the threshold of urbanization for farmers,and to promote the urbanization of permanent residents.(3)Make overall plan for the investment of fixed assets between urban and rural areas,eliminate blind urban construction,and promote both infrastructure construction and modernization construction in rural area.Each city has its own optimal city scale,and it should not implement a �one size fits all� policy.We should continue to increase the degree of economic openness to promote the further expansion of trade scale.