The Research Of Urban-Rural Income Gap Of Coordination Of Urban-Rural Harmonious Development

Since the reform and opening, with the progress of Chinese economic and social development, the government put forward the necessity of building a harmonious society. Why do we construct the harmonious society, as a large agricultural nation, the urban-rural income gap has reached the point where not be allowed to ignore. The enlarged gap shows directly that the urban-rural income gap presents a trend of changing big one which has seriously affected the construction of harmonious society in China. Whether or not the urban-rural income gap is in the control range directly relates to the degree of healthy economy, harmonious development, united residents, and steady social in the urban-rural areas.To give a advice for controlling the trend of changing big gap, based on trying to plan as a whole in the coordinated development of urban and rural areas, four parts in the paper are elaborated by analysing empirically some influencing factors which reflect the urban-rural income gap and taking example by the developed country in shrinking the gap.The first part discusses the interactive mechanism between coordinated development and the urban-rural income gap. On the one hand, the harmonious development will be in favor of reducing the urban-rural income gap. On the other hand, the moderate gap is the necessary conditions and requirements for harmonious development.The second part uses firstly grey forecasting theory to forecast the urban-rural income gap in China, and the result shows the gap has a continued and enlarged trend; then a regression model is structured which have urbanization level, financial development scale, human capital, fiscal support degree, the level of opening, such five aspects of economic policy factors have been analysed empirically in reflecting the urban-rural income. Results showed that the urbanization level and rural financial development level are inversely proportional to the urban-rural income gap, then this is consistent with the traditional economics theory. The human capital, financial support and economic openness are positively proportional to the urban-rural income gap in a certain period.The third part discussed mainly some developed countries which have the experience in inhibiting the income gap, and it will give inspiration to our country. Although, during the industrialization, the developed countries make government behavior choice increasing farmers' income and restraining the urban-rural income gap, its reason is different from our country, but they give a high attention to agriculture and farmers in the later industrialization. The fourth part, considering the coordinated development, analyses urbanization level, financial development scale, human capital, fiscal support degree and the level of opening, then give some proper advices to making the income gap be moderate in the scope of control.This paper explores in the policy of lessening urban-rural income gap based on the harmonious development between urban and rural. The innovating point is that a regression model is structured which have urbanization level, financial development scale, human capital, fiscal support degree, the level of opening, such five aspects of economic policy factors have been analysed empirically in reflecting the urban-rural income. Results show that that should restrain the urban-rural income gap, but now because of some factors, they increase the gap.