The Research Of China’s Urbanization Effects On The Income Gap Between Urban And Rural Areas

Lewis’ theory of dualistic urban-rural structure has described the urban and rural development will experience the process that agriculture supporting industry firstly, t industry regurgitation feeding agriculture then, and the two departments developed coordinately in the last. The "Inverted U" type of Kuznets curve puts forward the income gap between urban and rural areas will experience first expansion and then reduction process along with the advancement of urbanization. But since the reform and opening up, China’s income gap between urban and rural areas has also undergone a sharp increase of process, if according to this trend, not only can stimulate social contradictions, affect social stability, but also can lead to restrict the rural consumption energy, restricting the industrial upgrading, limit the consequences of China’s economic growth. Therefore, to study the effect of urbanization on the income gap between urban and rural areas, as well as whether the theory of Lewis’ dual structure between urban and rural areas, and the Kuznets’"inverted U" curve model is suitable for China’s urbanization since the reform and opening up to the impact of the income gap between urban and rural areas, has the theoretical and practical significance.First of all, this article from the theoretical level combed the income gap between urban and rural areas in China’s development present situation and the impact of urban-rural income gap enlargement. Secondly, this paper has discussed the influence factors of the income gap between urban and rural areas in our country to expand. Again, analyzes the process of urbanization in our country the influence on the income gap between urban and rural areas. And draw the conclusion:Lewis’ theory of dualistic urban-rural structure should not be used for the explanation of China’s urbanization process Then, this paper uses the data from1978to2013, to set up vector autoregressive model with two variables of our country urbanization level and the income gap between urban and rural areas, to prove that the development process of Chinese urbanization and urban-rural income gap is not in conformity with the Kuznets’"inverted U" type curve; Finally, with comprehensive qualitative and quantitative analysis, proposed our country should speed up the pace of urbanization, gradually break the household registration system, the appropriate policy tilt, pay attention to agricultural development, the thinking of a wealth tax.