Research On The Relationship Between China's Urbanization And Urban-rural Income Gap

Since the reform and opening up,China’s national economy began to developrapidly.However,urban-rural income gap showed a trend of sharp fluctuations.theproblem of the urban-rural income gap must be payed enough attention, Because inthe long run,the problem will lead to social instability, and harm the healthydevelopment of the national economy seriously.At the present stage,our country isadvancing the construction of urbanization, how to seize this chance to promoteeconomic development,maintain social stability,deflate urban-rural incomegap, should be the key issues,that also is the point of departure of the essay.To solveurban-rural income gap can amplify domestic demand and promote economicgrowth.at the present stage, The advantages of China’s foreign trade has graduallylosed,and the insufficient domestic demand has continued for many yearsalready,therefore, the whole national economy is a lack of motivation.At present, thelow of farmers’ consumption demand is the important factor of the residents’consumption.so far, insufficient consumption demand of famers are an importantaspect.This paper discusses how to reduce urban-rural income gap and promote theincrease of farmers’ income, which is conducive to the expansion of domestic demandand promoting the growth of the national economy.In the long run,The level of urbanization development can reflect a country’snational economic development and the ability to govern.reviewing the past ofurbanization, China has a large scale of city reconstruction before,but only focuson land urbanization, ignored the population urbanization, farmers living level did notincrease,the urban-rural income gap is still in the expansion.As the whole, theurbanization not only is considered as a necessary process of economic,but also socialdevelopment for countries.In a word, urbanization is an irreversible process ofeconomic and social development, pastly too much attention payed to urbandevelopment.Now we must attach importance to the integration of urban and rural areas.Under the background of the new urbanization,how to solve the problem of theurban-rural income gap,has caused the attention of not only the whole society, expertsand scholars,but aslo government officials and ordinary people.Therefore,the essayhas an important guiding significance to actuality.At the beginning,this paper adopts qualitative analysis and sum up the study ofthe relationship between urban-rural income gap and urbanization.Then,based onthe theory of Theil index, the essay calculates the theil index of urban-rural incomegap of1978-2011years, and analyse the fluctuation characteristics of urban ruralincome gap.that is the base of the further analysis.And then select Theil index,dualeconomic contrast, as well as the rate of urban population.Using measurementsoftware to build VAR model and do the quantitative analysis of urbanization andurban-rural income gap in China from1978to2011.At last,the paper drawes aconclusion:along with our country urbanization level rising, China’s urban and ruraldual structure constraint has not been broken, caused by urban and rural dual structuresystem of urban and rural residents income gap is gradually expanding.Based on the quantitative and qualitative analysis, the essay put forward to Payattention to change the dual economic structure in our country，safeguard farmers’development, broaden the income channels，optimize the system of the householdregistration，that redce the income gap between urban and rural areas.Finally, thispaper combined with the narrative, and make prospect for the future research.