The Difference Between Urban And Rural Income At The Process Of Urbanization In Hunan Province

International economic experience shows that growth is always related to the urbanization and rural-urban income gap. At present, it's a consensus that the urban-rural income gap has accelerated the expansion of the urbanization; while the level of urbanization increased the impact of rural-urban income gap still a controversy. Built on the literature on urbanization and rural-urban income gap, this paper studies the long-term trend and characteristics of urban-rural income gap and urbanization in Hunan. Then quantitatively analyzes the proportion of urban population, urban and rural labor productivity ratio, the rate of industrialization and the employed proportion in the tertiary industry effect on the urban-rural income gap. The conclusions of this paper are following:Fist, since economic reforming, Rapid economic development in Hunan Province, accompanied by a higher level of urbanization and urban-rural income gap widened. Urbanization and rural-urban income gap is mainly characterized by three major regional characteristics: the east of Hunan; the more developed, the higher the level of urbanization, urban-rural income gap is smaller; the middle, the level at the average of Hunan; the west, economic relatively backward, the lower level of urbanization, the largest income gap.Second, the empirical results show that between the urban-rural income gap and urbanization has the only long-term dynamic equilibrium relationship, that is the long-term stability proportional relationship. The proportion of urban population, urban-rural dual structure are the reasons for changing of urban-rural income gap; while the rate of industrialization and the proportion of the working population in tertiary are not the reason, instead the changes about urban-rural is caused industrialization and tertiary in Hunan Province. That shows population urbanization and the dual economy of the urban-rural play an important role in narrowing urban-rural income gap, the urban-rural income gap impeding the expansion of industry and the tertiary industry development. This paper raises some correlative and effective suggestions.