Research On The Association Between The New Urbanization Construction And The Urban-rural Income Gap

New Urbanization is not only the important part of the comprehensive deepening reform,but also the important way to promote economic development and narrow the income gap.Since the reform and opening up,as the economic development center of Hubei Province.While Wuhan's urban construction level rapidly increased,it also faced the problem of the urban-rural income gap's expansion.To solve this problem,this article attempts to make Wuhan to be the object.Through the two angles of urbanization and urban income gap,make a comprehensive analysis of the current situation and outstanding problems in Wuhan.Use the empirical analysis to investigate the dynamic association between the urbanization and the income gap.Finally,based on the empirical results put forward a series of policy recommendations.Firstly,the article describes the basic concepts of urbanization,new urbanization,emphasizes the differences which the new urbanization different from the traditional urbanization.Sum up the experience and lessons of the overseas urbanization construction.Base on the different angles,this article analyze the mechanism of the new urbanization construction to the income gap.Then,collects the relevant data about population and income from 1978 to 2014.Described the trajectory of the urban construction process and income gap and discuss its trends theoretically.In the empirical part,revised the formula of Theil index,choose the correction Theil index,weighting coefficient of variation and the ratio of urban and rural residents' income.Use the principal component analysis to establish indicators system,re-measure the income gap between urban and rural areas in Wuhan,and calculate the urbanization rate by the formula.Based on the results,utilize the co-integration test,granger causality test and VAR model to explore the further relations between urbanization rate and income gap index.The results show that there is an equilibrium relationship between the urban construction and the income gap.The urbanization rate's improvement can narrow the income gap.But in the short term,to a certain extent,it will widen the income gap between urban and rural areas.According to the above discussion and analysis,combined with the two levels of promoting the new urbanization construction and narrowing the income gap.This article proposes some policy recommendations for the reform of income distribution system and the urbanization construction.