Economy Agglomeration,Urbanization And Distribution Of Resident Income

For the past years,with the continuous improvement of economy agglomeration and the acceleration of urbanization,profound transformation has taken place in China.As a result,China has been more closer to the center of the world arena than ever before with an ever-increasing comprehensive national power and international standing.Meanwhile,China remains of the largest developing economy,the principal contradiction facing Chinese society has evolved,what we now face is the contradiction between unbalanced and inadequate development and the people's ever-growing needs for a better life.A major manifestation of unbalanced and inadequate development is the huge income gap between urban area and rural area and the huge gap among regions.On the perspective of Hubei Province,thank to the advancing of economy agglomeration level,a development pattern with the characteristic of “One center city(Wuhan)with two sub-center cities(Yichang and Xiangyang)and multiple growth poles” has formed for the past several years.At the same time,we witnessed the significant increasing of urbanization rate and resident income,as well as the increasing of the income gap existing between urban area and rural area and the gap among regions.Correctly understanding the roles that economy agglomeration and urbanization play in income distribution is of great significance for Hubei Province to finish the building of a moderately prosperous society and to achieve the goal to build the strategy support for the rise of central China and be at the forefront of transforming the economic development pattern.On the basis of the theories of new economic geography(NEG)and spatial econometrics,the paper provided an evidence from Hubei Province including 80 counties to discuss the relationship among economy agglomeration,urbanization and income distribution by the means of the combination of qualitative analysis and quantitative analysis,and draw the conclusions as follows:(i)local urban resident income can benefit from the improving of the economy agglomeration in Hubei Province that is also conductive to narrow the local income gap between urban area and rural area.(ii)the advancing of urbanization significantly promoted the increasing of resident income in rural area,while it produced very little effect on resident income in urban area,which contributes to narrow the income gap between urban area and rural area.(iii)it proved the exist of regional competition and siphon effect.The improving of economy agglomeration and urbanization intends to lower the income level of the residents in neighbour area,which may go against the high quality development.(iv)control variables,including capital-labour ratio,per capita agriculture output value and per capita retail sales,performed well in empirical analysis and backed up the view that siphon effect is exist.(v)the estimate result is more robust in Spatial Durbin Model with asymmetric spatial weight matrix,the coefficient of direct effect of economy agglomeration is more significant,as well as the spillover effect of economy agglomeration and urbanization.