Research On The Impact Of Industrial Structure Adjustment On Urban-Rural Income GAP In China

Over the past 40 years of reform and opening up,China's economy has achieved rapid development,the total economic volume has increased rapidly,and people's living standards have been greatly improved.However,behind the economic prosperity,the income gap is gradually expanding.The excessive income gap has aggravated the main contradictions in the primary stage of socialism in China,which is not conducive to social stability and people's harmony.In recent years,with the help of national policies,the income gap between urban and rural areas has shown a narrowing trend.However,China's economy has entered a new state,economic growth has slowed down significantly,it is also a new period of economic development power transformation,Emerging industries and modern service industries with information technology as the core have become new leading forces.Therefore,in the new economic situation,the problem of urban and rural income inequality is also facing new challenges.It is not easy to keep the income gap between urban and rural areas narrowing,so how to narrow the income gap between urban and rural areas has become an important issue to be solved urgently.The optimization and upgrading of industrial structure is the fundamental driving force to promote economic growth and inject new vitality into economic development.Studying the impact of industrial restructuring on urban-rural income gap plays an important role in explaining urban-rural income distribution in the process of economic development.Industrial restructuring means the redistribution of labor and capital elements among industries.However,China's economy shows a typical dual economic structure.The primary industry is mostly concentrated in rural areas,while the secondary and tertiary industries are mainly concentrated in urban areas.The optimization and upgrading of industrial structure will inevitably affect the redistribution of labor and capital in urban and rural areas through the flow of labor and capital elements among industries,thus affecting the income gap between urban and rural areas.Therefore,exploring the impact of the new trend of industrial restructuring on the urban-rural income gap will help us to find ways to keep the urban-rural income gap narrowing.This paper divides the adjustment of industrial structure into the upgrading and rationalization of industrial institutions.Using the data of 1978-2017 from the whole country and provinces,the paper establishes VAR model to illustrate the long-term and short-term relationship between the upgrading and rationalization of industrial structure and the income distribution gap between urban and rural areas.The research shows that in the short term,the rationalization of industrial structure has a positive effect on narrowing the income gap between urban and rural areas.In the long run,the upgrading of industrial structure is conducive to narrowing the income gap between urban and rural areas,while the rationalization of industrial structure has no obvious effect on narrowing the income gap between urban and rural areas.This paper aims to clarify the impact mechanism of industrial restructuring on urban-rural income gap,clarify the relationship between them from the theoretical and empirical aspects,so as to find ways to narrow the urban-rural income gap,improve farmers' income and improve the quality of development from the perspective of industrial restructuring.