Analysis Of Urban-rural Income Gap In Gansu

Since the reform and opening up, Gansu Province has made great strides income growth, quality of life significantly improved, urban and rural living environment has tremendous changes. However, the income of urban residents in our province growth slowly, the income gap between urban and rural residents shows a growing trends. The large income gap would bring a series of discordant notes. Large income gap between urban and rural areas reflects the underlying causes. So how to integrate urban and rural areas, how to increase the income of the rural residents, and how to co-ordinate urban and rural development is key to narrow the income gap between urban and rural areas.Through theoretical and empirical analysis, this paper concludes that:Gansu income gap between urban and rural residents is consistent with national trends, urban-rural income gap was widening in general, lower than the national average income, higher than the national urban-rural income gap level.To analyze the income gap between urban and rural residents the causes are in two ways:First, from the perspective of economic theory, there are 5 factors that influence urban-rural income gap between Gansu:the historical and traditional factors, population and quality factors, geographical and environmental factors, thinking and decision-making factors and institutional and management factors. Second, the per capita GDP growth rate by level of urbanization, urban-rural comparison of labor productivity, industrial ratio, employment structure and the Government's financial support for agriculture growth rate of six indicators, collected from 1978 to 2008 data, subtotals calculation, carried out relevant analysis and regression analysis. Through correlation analysis, urban and rural residents that the impact of Gansu Province is largely due to the widening income gap:the lower the level of urbanization in Gansu, the second and tertiary industries, fewer employees, the employment structure is irrational, and non-agricultural production and agriculture industry to increase value added due to relatively small values.For the case of low income of rural residents, Gansu Province should on the one hand increase the level of urbanization and reduce rural population, so that more of the rural population can enjoy the urban civilization; on the other hand, should be through the development of rural economy and increase their income and improve the educational levels of farmers, improve production and living conditions in rural areas,continue to narrow the income gap between urban and rural residents and to achieve social harmony and healthy development.