Studying On The Influence Of Hubei Industrial Structure On The Income Gap Between Urban And Rural Areas

The change of industrial structure has an important influence on the income distribution of residents, and there is a close link between the two. Generally speaking, the income gap includes the income gap of urban residents, the income gap between urban and rural residents and the income gap of rural residents.This paper focuses on the research of the income gap between urban and rural residents. This paper analyzes the reasons and results of the change of industrial structure of Hu Bei from 1981 to 2013 impacting on the income gap between urban and rural areas from aspects of theory and empirical.First of all, this paper introduces the relevant theory of the Industrial structure change and income distribution, and trying to reveal the internal mechanism of industrial structure change effecting on the income gap between urban and rural areas. This paper analyzes how the industrial structure indirectly influence the income gap between urban and rural areas from aspects of marginal returns, employment structure and urbanization. Then we analyze the current situation of Hubei industry structure and the income gap between urban and rural areas. And This paper analyzes the current situation of the industrial structure of Hu Bei province and the income gap between urban and rural areas and calculates three industrial structure deviation degree of Hu Bei province. We can see that the first industry structure is negative which exists a large number of surplus labor force.While the second and third deviation degree of industrial structure is positive which indicates they have the ability to absorb labor force in order to reduce the income gap between urban and rural areas.We need to lead the surplus labor force transfer from the first industry to the second and third industry.We structure the mathematical model of non-industrial output value accounting for the impact of changes in the income gap between urban and rural areas through constructing the Theil index,and the effect of non-industrial output value on the income gap between urban and rural areas is to expand firstly and then to narrow.We select three variables consisting of the proportion of non-agricultural industries, the level of service economy and the income gap between urban and rural to construct the model of VAR.Through the cointegration test,we can know it exists the long-term cointegration relation, then using the Granger causality test and impulse response function analysis, the proportion of non-agricultural industries and the level of service economy is the Granger cause of the expansion of the urban-rural income gap. Giving a standard deviation information impact, they produce a positive impact on the income gap between urban and rural areas, but the extent is different.The impulse response effect of the proportion of non-agricultural industries in the later turns into a negative trend, and Consistenting with the mathematical model of the research results in a certain extent. With the increase of proportion in non-agricultural industry, the third industries does not necessarily reduce the income gap between urban and ruralareas. The third industry development has a good to improve the income of rural residents, but the city residents could benefit from it greater.Based on the above analysis, the industrial structure change of Hu Bei province has a profound impact on the urban-rural income gap. The adjustment and optimization of industrial structure would produce some important significance to reduce the income of urban and rural residents in Hu Bei. In this paper, according to the actual situation of Hubei area, we put forward the corresponding policy recommendations from the development of modern agriculture,improving the quality of urbanization and optimizing non-agriculture industrial structure to reduce the income gap between urban and rural areas.