Empirical Research On The Income Gap Of Urban And Rural Residents And Its Economic Performance Of Zhejiang Province

Since the reform and opening up in 1978, Zhejiang's economy has present steady, rapid and sustained momentum of development, significantly improve overall strong, rapid growth of both urban and rural incomes, the people out of poverty, step from inadequate food and clothing to achieve well-off. At the same time the phenomenon of uneven development between urban and rural areas became increasingly obvious that income disparities have become increasingly prominent problem. How to regard the income gap between urban and rural residents and the resulting economic performance, related to the harmonious development of the society. In dealing with the relationship between efficiency and equity, the key is how to understand the purpose of economic development, how to formulate development strategies and policies by decision makers. At present the principles of macroeconomic policy, "pay more attention to social equity", effective regulations and controls of the income gap between urban and rural residents are of great significance to build a moderately prosperous society in all respects in Zhejiang Province. On the basis of previous studies, this thesis analysis of the income gap between urban and rural residents in Zhejiang Province and its economic performance.This article consists of three parts. The first part introduce the income gap, Gini coefficient, coefficient of variation to describe the 1978-2009 income situation of urban and rural residents in Zhejiang Province, the results show that with rapid economic development, the income gap between urban and rural residents in Zhejiang Province on the rise, although the existence of regional economic development in Zhejiang Province, but did not differ much between regions. Used to decompose the Theil Index, found mainly in the urban-rural income inequality, urban and rural areas within the income gap within the small contribution.The second part, through the convergence test and found that the number of Zhejiang Province on the standard deviation of GDP first increased and then decreased from 1993 began toσ-convergence, but also the development process to determine the existence of Zhejiangβ-convergence, in general not convergence clubs exist, but 1978-1985, Zhejiang Southeast Convergence 1985 to-1990 the club there, years, there is club convergence north of Zhejiang from 1990-2009 and Southwest there is club convergence. The third part, through the establishment of simultaneous equations, from the level of investment in both the degree and education, examines the income gap between urban and rural economic performance, that the income gap between urban and rural areas and the extent of investment in education is the immediate impact of fluctuations in the form of accumulated negative impact on economic development, the immediate and cumulative effects are negative.