Research On The Influence Of China's Industrial Structure Change On The Income Gap Between Urban And Rural Areas From1978to2011

In the process of economic transformation over the past30years, it is institutional change from the market orientation and the allocation of resources and incentives that China achieves outstanding economic growth performance. However, the income gap, especially the income gap between urban and rural areas is getting widening. Income gap between urban and rural areas is affected by many factors, among them; the industrial structure is an important factor. The transformation of industrial structure affects income gap between urban and rural areas by pulling the transfer of agricultural surplus labor, and at the beginning of the reform and opening up, China's industrial structure change has brought once to narrow the income gap between urban and rural areas, however, in the later period, the industrial structure changes, and the income gap between urban and rural areas is also increasing. However, in the current industrial structure, there are still many problems, agricultural structure adjustment is lacking in strength, industrial development pattern is extensive, the service industry is underdeveloped, and the industry space layout is unreasonable, which lead to non-agricultural industry can't absorb rural surplus labor effectively, thereby expanding the income gap between urban and rural areas. If these problems can be effectively solved, narrowing of the income gap between urban and rural areas can be realized in the near future.Therefore, in the stage of accelerating development of industrialization and urbanization in our country, it is urgent to deal with problem of income gap between urban and rural areas, and establish a new harmonious relationship between the urban and rural, which directly reflects the level of understanding and management ability of balancing urban and rural development for a country or an area, and it is one of the important symbol of a nation or region sustainable development level.This paper applies the China changes of industrial structure and the income gap between urban and rural as the main line, systematically analyses the mechanism of the effect of industrial structure on the income gap between urban and rural areas, in addition, tests them to combine with history in our country, and on this basis, further, takes empirical analysis based on the measurement method of the new economic history school to test the correlation between industrial structure and the income gap between urban and rural areas, gets research on the impact of the rationalization degree of industrial structure, the level of advanced industrial structure, and the industry space layout change on the income gap between urban and rural areas. Specifically, summarized as follows:First of all, this paper discusses the views that the theory and inherent mechanism of industry structure changes on the income gap between urban and rural areas. Theoretically speaking, industrial structure change has impact on the income gap between urban and rural areas mainly mainly includes industrial structure change theory, dual economic structure theory, regional economic development theory, theory of income distribution gap, and the theory system and institutional change. The mechanism of t industrial structure change has impact on the income gap between urban and rural areas mainly through department of dual economic structure, regional dual economic structure, agricultural structure adjustment, fluctuation of industrial structure, service industry structure optimization, urbanization and labor mobility, and institutional change, technological progress. Analysis of the impact mechanism provides a theoretical basis and sources related to this research, which is beneficial for the further research from the historical and empirical perspective, laying the theoretical foundation for the impact of industry structure changes on the income gap between urban and rural areas.Secondly, the conclusion of theoretical analysis clearly need practical test. Therefore, from a historical perspective, based on the Chinese economic growth history from1978to2011, get an intuitively inspect on the condition of industrial structure change and the condition of the income gap between urban and rural areas during this period. Emphatically from the angle of history, dividing into different periods to get research on the influence of industrial structure on the income gap between urban and rural areas by using historical analysis method from1978to2011, namely economic system reform stage (1978-1983), economic system reform stage (1984-1991), setting up the system of socialist market economy (1992-2001), improve the social system of socialist market economy stage (2002-2011), so as to be clear about the structural causes of which changes of the income gap between urban and rural areas in different stages.Again, get the analysis of the correlation and empirical research on the influence of industrial structure changes on the income gap between urban and rural areas. Primarily, it is necessary to know whether a correlation exists between the industry structure changes and the income gap between urban and rural areas before the research. In this chapter, in order to test the correlation between them, relevant indicators of industry structure changes and the income gap between urban and rural areas will be established, and some methods such as Grainger causality test and VAR model will also be applied, so that we can understand and recognize the impact of industrial structure changes on the income gap between urban and rural areas from the perspective of structural change, and lay the premise and the foundation for the later empirical analysis.Then, based on the analysis of the correlation for the influence of industrial structure changes on the income gap between urban and rural areas, construct econometric model to further analyze the influence of industrial structure changes on the income gap between urban and rural areas. Mainly includes two aspects:on the one hand, the research on the impacts of some factors on the income gap between urban and rural areas, these factors including the rationalization degree of industrial structure, the level of advanced industrial structure,and the economic development level, urbanization ratio, marketization level, foreign direct investment level, human capital content, the level of the content of government intervention,which in the process of industrial structure changes; on the other hand, take quantitative analysis for the impact of the industry space layout change on the income gap between urban and rural areas.Finally, summarizing the experience and lessons of the influence of industrial structure changes on the income gap between urban and rural areas in the traditional mode of development, based on reality, analysis and understanding of importance of the industrial structure change on narrowing the income gap between urban and rural areas in transformation of the mode of economic development, put forward industrial structure change paths which are motivated by agricultural industrialization, new industrialization, new urbanization of development, and the region economy coordinated development, only system needs to be top-level designed, can the income gap between urban and rural areas narrow in the true sense of the future.