Study On The Impact Of Urbanization On Urban - Rural Income Gap Based On Spatial Panel Model

In recent years, with the continuous expansion of the total economy, the gap income between urban and rural residents has been significantly improved with the improvement of the level of urbanization. However, the income gap between urban and rural areas is also showing a rising trend shocks. Especially since the 21 century, with GDP up to 5.6 billion RMB in 2013, the urbanization rate is 53.73%, while China’s urban-rural income gap has been slightly higher than 3 times, urbanization have not narrowed the income gap between urban and rural. As we know, the widening income gap has become a major factor affecting the harmonious society construction. Therefore, the study of urbanization and the income gap between urban and rural areas is particularly important.First, urbanization and urban-rural income gap between the theoretical analysis, research urbanization on rural income gap mechanism of action, and urbanization, the income gap between urban and rural areas were the status quo analysis. The study found that in the process of urbanization, as China’s GDP continued to show rapid growth, revenue and net income of rural residents of urban residents’ disposable also rising, but its growth has disproportion, the income gap gradually prominent.Therefore, this paper analyzes the impact and spatial effects of urbanization on the income gap between urban and rural areas based on 2000-2013 data in panel 31 Chinese provinces, spatial panel model.Empirical analysis found: First, the income gap between urban and rural China has a significant positive correlation characteristics. Second, the test results show that the paper should select the area-fixed effects model. The results show that the level of urbanization, urban fixed asset investment ratio, financial support for agriculture and economic growth in spending than the direct effect of the results of the regression model significantly, which increased only Fiscal Expenditure ratio will narrow the income gap between urban, other influences affect direct effect of factors are positive effect; the indirect effect regression results, the urban fixed asset investment ratio and the ratio of the coefficient of fiscal Expenditure are significant and negative effect, indicating that the increase in urban fixed asset investment and financial support for agriculture spending the income gap between rural and urban areas will have positive impact on the adjacent narrow.