The Effect Of Optimization Of Industry Structure On Urban-rural Income Gap In Henan

The economy of Henan has been growing rapidly and people’s living standard has greatly improved since the reform and opening in 1978. But there also comes some problems along with the rapid growth of the economy, especially the urban-rural income gap. On the other hand, a large number of labours flood from the country to the city as the result of the optimization of industry structure, they have important influences on the income gap between urban and rural areas by various factors during the procedure of improvement of industry structure and rationalization of industry structure. So it is necessary to discuss that how the optimization of industry structure affects the income gap between the city and the country for the sake of a quickly industry structure improvement, a narrow urban-rural income gap and a realization of the integration of town and country.Firstly, this paper summarize the documents from the inside country and abroad, concludes the mechanism that how the optimization of industry structure works on the income gap between urban and rural areas. Then the paper analysis the current situation of optimization of industry structure and the income gap in Henan. After that,with the experience of the economist, the paper takes the percentage of the sum of the secondary industry and the tertiary industry of the GDP as the improvement of industry structure indictor, takes the deviation of industry structure as the indictor of rationalization of industry structure, takes the ratio of the average disposable income of the city to the average pure income of the country as the indictor of the income gap between the city and the country, then, the paper takes the data from 1978 and 2014 of Henan and analysis them, then finds that the improvement of industry structure broaden the gap of income between the city and the country but the rationalization of industry structure narrow it between 1979 and 2003;also, the improvement of industry structure has some "inverted U" influence on the income gap between urban and rural areas while the rationalization of industry structure has bare influence on it between 1999 and 2014. At last the paper points out the existing problems of narrowing the income gap by optimizing the industry structure in Henan and comes up with some suggestions from the points such as promoting the upgrade of agriculture, taking a new road toward industrialization developing the tertiary industry rapidly, promoting the revolution of dual system and so on.