The Impact Of Economic Opening And Urbanization On The Urban-rural Income Disparity In China

In recent years,China's economy has been developing continuously,the degree of economic openness has been continuously improved,China's urbanization rate has also been significantly increased,and the income level of urban and rural residents has greatly improved.But in foreign trade is continuously expanding,the process of advancing urbanization,the income gap between rural and urban areas did not show the expected,instead,improving continuously the income gap between rural and urban areas,becoming a unstable factors affecting social stability.Based on this,this paper analyzes how economic liberalization and urbanization affect the income gap between urban and rural residents in China.Firstly,this paper analyzes the mechanism of economic opening and urbanization on the income gap between urban and rural residents,and analyzes the current situation of its development.Results show that in the foreign trade is continuously expanding,the process of urbanization level enhances unceasingly,the per capita income of urban and rural are there has been a significant rise,but the urban and rural per capita income growth is showing a very big difference,income gap is gradually apparent.Due to the rapid development of Internet industry,more closely contact between region and region,strengthen the interactivity on the space,therefore,we use spatial panel model analysis is often more accurate than the cross section.Based on the panel data of 31 provinces in China from 2005 to 2015,this paper adopts the spatial panel model to study the impact of economic liberalization and urbanization on the income gap between urban and rural residents in China.Empirical analysis found that: first,through the spatial correlation test,the income gap between urban and rural areas Moran 's I index was significantly positive,indicating China's urban and rural residents income gap has obvious spatial correlation,further illustrate the rationality of the use of spatial panel model.Secondly,the model test results are decomposed into direct effect,indirect effect and total effect.The analysis results show that the indicators of economic openness have a significant inhibitory effect on the income gap between urban and rural residents under the direct effect,indirect effect and total effect.Urbanization under the action of direct effect,to expand the province within the domain of urban and rural residents income gap,while the indirect effect and total effect,under the action of the urbanization process is able to inhibit both urban and rural residents income gap is widening.In addition,the proportion of the secondary and tertiary industry,thedifference of fixed assets investment between urban and rural areas,the level of economic development and the level of human capital have different impacts on the income gap between urban and rural areas.