Effects Associated With The Mechanism Of Chinese Urbanization And Income Distribution

Urbanization is the phenomenon of spatial agglomeration with the development of economy of the society, a country or a region’s urbanization level has close relation with income distribution. With the rapid development of China’s economy, economic strength increase substantially and the income level of resident is improving constantly. However the problem of income distribution is highlighted, China has become one of the most serious countries who have unequal distributions of income. So the detention of urbanization process has been an important reason to affect the income gap. The continuing process of urbanization is a major issue facing the China.In order to investigate the link between the urbanization and income distribution mechanism and effect, and make a correct evaluation of the coordination between the two. Based on hereinbefore problems, this paper uses the method of criterion and demonstration research and determining the nature and quantifying research to complete hereinafter work. This paper makes experiential by building a panel data model to analyze the income gap problem in the process of urbanization from2005to2012.This paper mainly includes the following five parts.Firstly, after illustrating the selected topic background the theoretical and practical significance, and combining with the achieved results, the author puts forward research perspectives, methods and goals, and then points out the difficulties, innovative ideas and shortcomings.Secondly, this paper emphatically describes the theoretical framework of urbanization and income distribution. And it researches on the relationship between urbanization and income distribution, based on the theory of developing urbanization and the theory of income distribution. It is necessary to analysis between urbanization and income distribution.Thirdly, this chapter establishes the panel data model, which is used to measure the degree of narrowing of the income distribution gap because of the urbanization. Based on the points and features of the east, west and middle areas, we find that, in each region, the developing urbanization will reduce the income distribution gap. Therefore, we can predict that accelerating urbanization will further reduce the income gap between urban and rural areas. So the urbanization process should be speeded up to decrease the inequality of income distribution.Fourthly, this part analyzes the cause of the income gap between urban and rural areas. The last part chapter has shown that urbanization can narrow the income gap to a certain extent. So speeding up the process of urbanization is a way to reduce the gap.At last, the paper summaries the research contents and the achievements, summaries the deficiency and discusses the problems which should be further researched.Although, the paper has achieved the excepted target to some extent, it also owns some defects, which helps the discussion to get further improvement. On the one hand, the paper can not deduce the specific relationship between the income distribution and urban-rural income gap, on the other hand, because of the increase of the urbanization ratio whether the conclusion will be affected or not need to get further improvement. These will be the main direction of further study and research in the future.