The Influence Of Urbanization On The Income Gap Between Urban And Rural Areas In China

Since the reform and opening up in 1978,the economy has developed rapidly and achieved remarkable achievements in the world.The urbanization process is gradually advancing with the development of the economy,the number of cities and towns is increasing,the urban functions are more perfect,the urban population is experiencing a sharp increase trend,and the problem of widening the urban-rural income gap has also aroused widespread concern in the whole society.The free flow of labor between urban and rural areas in China can promote the optimal allocation of resources and converge the income gap between urban and rural areas.However,under the dual economic system of urban and rural separatism in China,the free flow of labor is restricted,leading to the long-term lag of urban economic development in urban areas.The development of the economy and the disharmony between the urban and rural income gaps have become a key issue that the current society needs to solve urgently.From the specific data,from the reform and opening up to 38 years in 2015,China's urbanization rate has increased from 17.92% to 56.10%.However,China's urban-rural income ratio has expanded from 2.57:1 in 1978 to 2.74 in 2015: 1(1 represents the net income of rural residents),which reached the highest historical value in 3.33:1 in 2007 and 2009,so it is necessary to clarify the law of the change of urban-rural income gap in the process of urbanization in China.What is the relationship between the urbanization process in China and the change in the income gap between urban and rural areas? Is shrinking or expanding the income gap between urban and rural areas? Or other relationships? What are the influencing factors? In the process of rationally promoting urbanization,how should the government narrow the income gap between urban and rural areas? These are the contents of this article.On the basis of relevant literature research,this paper is based on the theory of On the basis of relevant literature research,this paper is based on the theory of dual economic structure,"inverted U" theory,urban bias theory,etc..From the perspective of the impact of urbanization process on the change of urban-rural income gap.According to established the research subject,choose the degree of economic development,the proportion of fixed assets investment,foreign trade dependence and industrial structure for specific analysis.Using the relevant data from 1978 to 2015,the fixed-effects model and the random-effects model were used to compare and analyze the dynamic relationship between urbanization process and urban-rural income gap.Finally,it is concluded that the urbanization development between China and the income gap between urban and rural areas is indeed in line with the “inverted U” theory,and the urbanization rate of the inflection point of the “inverted U-shaped” curve in the country is about 63.9%,and that of the eastern,central and western regions is 53.8.%,48.7%,52.3%;the improvement of economic development level expands the income gap between urban and rural areas,and the two are negatively correlated.The proportion of fixed assets investment,industrial structure and foreign trade dependence can narrow the income gap between urban and rural areas,which is positively correlated.