Research On The Relationship Between Virtual Capitalization Of Land And Urban-rural Income Inequality In China

Land is the mother of all things,the foundation of people's livelihood and the foundation of development.Land is related to the national economy and people's livelihood.Since the reform and opening up 40 years ago,China's economy has developed rapidly and made brilliant achievements.In 2018,China's GDP exceeded 90 trillion,which is in the second place in the world.During this period,land played an important role.Along with the rapid economic development,a series of social problems and prominent contradictions have gradually shown up.Therefore,the 19th National Congress of the Communist Party of China proposed that the main contradiction of Chinese society has already been transformed.It is now the contradiction between the people's growing needs for a better life and the uneven development.From this we can see that,in order to build a modern economic system,the first problem China needs to solve is the problem of uneven development,especially the income inequality between urban and rural areas.At the same time,as the the income inequality between urban and rural areas becoming more prominent,along with other economic problem,housing price remains high.The problem of urban-rural income inequality has become increasingly prominent with the high housing prices.We wonder whether there is a certain correlation between the two,and wonder whether the price increase is related to land,or the role of land leads to the problem of income inequality between urban and rural areas.Based on this,in theoretical part,this paper analyzes the fundamental reason behind the rise of housing prices and the virtual capitalization of land based on the perspective of Marxist political economy.The article begins with the theoretical explanation and historical evolution of capital,virtual capital and virtual capitalization,and analyzes the evolutionary logic of land virtual capitalization,namely the" six-chemical" process.Including land profitability,land transaction,land monetization,land asset,land capitalization and land virtual capitalization.On the basis of this,this paper explores the reasons why the virtual capitalization of land leads to the inequality of urban and rural income in China,and the dynamic impact of land virtual capitalization on urban-rural income inequality,and puts forward two theoretical hypotheses of empirical research.In the empirical part,the paper takes China's provincial panel data as the main body of research to verify the two theoretical hypotheses.It is found that land virtual capitalization will indeed promote China's economic growth and raise the income level of the whole society,and the impact of land virtual capitalization on China's urban-rural income inequality is "inverted U-shaped".that is to say,it gradually strengthens and then weakens.This paper empirically studies not only the impact of land virtual capitalization on urban-rural income inequality,but also the impact of economic growth,human capital,openness,urbanization rate,government intervention capacity and industrial structure on urban-rural income inequality.It finds that economic growth,human capital,urbanization rate,government intervention capacity have a significant effect on narrowing the income gap between urban and rural areas.Also,the degree of openness and industrial structure have a significant effect on expanding the income gap between urban and rural areas.Finally,based on theoretical analysis and empirical conclusions,this essay proposes policy recommendations for China's land virtual capitalization process and urban-rural income inequality from five perspectives,including strengthening rural infrastructure,accelerating confirmation of rural land rights,promoting rural financial development,restraining real estate bubble in large and medium-sized cities,and reducing the income gap between urban and rural areas through other factors.