Optimization And Upgrading Of Lndustrial Structure And Urban-rural Income Gaps On The Basis Of The Panel Data Of The Western China

With the development of economy, the income gap between urban and rural residents have also shown an upward trend fluctuation. Many factors affect the income gap, the industrial structure is undoubtedly an important factor. This article will probe the change of urban-rural income gap from the perspective of Optimization and upgrading of industrial structure. We analysis the way and the result of what impact that western region's industrial structure optimization and upgrading have put on urban-rural income gap, We analysis this question in both theoretical and empirical aspects, from year 1985 to 2014.Based on the definination of industrial structure optimization and upgrading's two dimensions, rationalization and advancement. In the first, we analysis the mechanism of in which way can industrial structure put impact on urban-rural income gap with the theory of Marxist political economy and put forward two hypotheses to be verified.Then,we descripte the history and current conditions of western district's industrial structure and urban-rural income gap with Deviation degree of industrial structure and Theil index.In empirical section,I use panel data of western region from year 1985 to 2014,chose FGLS method to estimate econometric model and have a brief discussion of robustness.The econometric results indicate that industrial structure advancement in western China will expand the income gap between urban and rural areas,but industry structure rationalization will narrow the income gap between urban and rural areas.This verifies two hypotheses in the theoretical part:when the western region industrial advancement index rose 1%, Theil index that represent income gap will rise an average of 0.2024%,when the index of industrial structure rationalization fell 1%,Theil index will decline 0.3157%.Finally, according to research conclusion, this paper put forward the policy suggestion to narrow the income gap in the western region from the perspective of industrial structure optimization and upgrading.