Empirical Research On The Income Gap Between Residents Of City And Rural Areas In Chongqing

At present, the rapid expansion of the income gap between residents of City and Rural Areas has become a hot social issue. The income gap is not only relevant to efficiency but also affect economic efficiency. More importantly, too great income gap between between residents of city and rural areas will affect the stability of the society. The income gap between residents of city and rural areas is more severe than others. In recent years, the income of peasant has growed slowly and the income gap between residents of city and rural areas has expanded. This is not only affects their living standards improving, but also affect food production and supply of agricultural products; not only restricted the economy development of rural, but also restricted the economy development of the country. Chongqing is China's largest and most populous municipalities with tipical dual urban-rural structure.and, is one of reform pilot of coordinating urban and rural. The income gap between residents of city and rural areas in Chongqing is very big, Regional development imbalances, and the tasks of resource conservation and environmental protection are arduous. It is collections of China's eastern and western phenomenon, with many similars especially in western in china. Therefore, it is typically to study the the reasons and the trend of the income gap in Chongqing. It is of great significance to promote coordinating urban and rural, to implement the"314"plan of Hu Jintao, and to lead Chongqing achieving a completely well-off society in the western region. At the same time, it has important role in theory guiding in narrowing the income gap between residents of city and rural areas, in building a harmonious society and constructing a completly well-off society.On the basis of previous studies, referring to the dual economic theory, inverted "U" theory, personal income distribution theory,applying multiple regression analysis,regression analysis, and ARIMA model, conducted empirical research on the income gap between residents of city and rural areas of Chongqing in the angle of time and space.Firstly, analyses the status and evolution of the income gap between residents of city and rural areas in Chongqing. Use the method of Comparative Analysis to study it, in the views of Horizontal comparison and vertical comparison, Horizontal comparison is compare Chongqing with National and other municipalities, the result is the level of Chongqing is much more than the National and other municipalities; vertical comparison is mainly to study the law of time-space evolution, the result is that the income gap between residents of city and rural areas in Chongqing continued to expand.Secondly, study the effect which comes from the expansion of the income gap between residents of city and rural areas. Mainly from two aspects: First, theoretical analyses the contribution of the income gap between residents of city and rural areas to total income gap with using Theil index. Secondly, research the impact on the Consumer demand, investment demand and overall economic which come from the expansion of the income gap between residents of city and rural areas by using regression analysis and vector autoregressive model. The main conclusion is the expansion of the income gap between residents of city and rural areas has a great impact on the economic development. Which mainly in two point; first, the expansion of the income gap between residents of city and rural areas decide the expansion of the total income gap. Second, the expansion of the income gap between residents of city and rural areas in Chongqing may result in insufficient consume and investment, even has strong negative impact on economic development.Then, study the factors which result in the continued expansion of the income gap between residents of city and rural areas in Chongqing. First, by using the multiple regression analysis, study the main factor resulting in the expansion of the income gap between residents of city and rural areas. Then, through building multiple regressions model to specifically analyses the effect of the factor to the income gap. Finally, according to the result analyses the root which result in the expansion of the income gap between residents of city and rural areas in ChongqingFinally, forecast the trend of the income gap between residents of city and rural areas in Chongqing. Using the high precision short-term ARIMA model to forecast the trend, the results show that it will continue to expand even faster.Research shows that the income gap between residents of city and rural areas in Chongqing is more than the national average, much more than the level of the other three municipalities and the trend of further expanding. So, the government at all levels of Chongqing should be fully aware of the seriousness of the problem, take positive and effective measures to contain and reverse the trend of the income gap between residents of city and rural areas and in the final gradually narrow the gap.