The Research On Our Country's Urbanization Effects On The Urban-Rural Income Gap

In recent years,China's economy has developed at an amazing speed,and the people's living standard has improved significantly.However,with the economic growth,the income gap between residents is not reduced,but to the growing trend of development.As an important component of the income gap,the income gap between urban and rural areas attracts more and more people's attention.In order to reduce the income gap between urban and rural areas,we put forward the construction of urbanization.In recent years,China has proposed the construction of new urbanization.It has improved further the content of the urbanization.The connotation of urbanization is no longer just a number of towns,the population increasing,but human centered,paying more attention to the education,health care,environment etc,which making China's cities and towns of to construct to the high quality,comprehensive transition.Hope to build a new type of urbanization,and then narrow the income gap between urban and rural areas.But so far,the urbanization rate is gradually increased.However,the income gap between urban and rural areas has not been effectively improved.Then,what kind of relationship between urbanization and urban-rural income gap is worth pondering.On the basis of reading literature,first of all,we summarize the relevant theories of urbanization and urban-rural income gap.Then,we analysis the relationship between the urbanization and urban-rural income gap.In the literature,the urbanization rate is mostly used to measure the level of urbanization,but because of the rich connotation of urbanization,the urbanization rate can not reflect the essence of urbanization.Therefore,we divide two steps to study the relationship between urbanization and urban-rural income gap.The first step is to build a comprehensive index system of urbanization.From four aspects of population,economy,society and space,we choose indicators.Then we use entropy method of each index weights.Finally we get the level of urbanization.The results show that the level of urbanization is increasing year by year,and the trend is roughly the same with the urbanization rate.However,the urbanization rate is greater than the comprehensive urbanization level.The second part is to study the relationship between the urbanization and the income gap between urban and rural areas.First,we use urban-rural income gap to establish regression with the four facters that we bulid in demographic,economic,social and land.We can analysis the influence of the four facters on urban-rural income gap.We can know that urbanization will widen the urban-rural income gap.In the process of urbanization,we should pay attention to the overall development.Then based on the comprehensive urbanization level in the first step,we use the VAR model to study the relationship between the urbanization and urban-rural income gap.There is a long-term stable trend between the urbanization and urban-rural income gap.We can get that urbanization is granger cause of urban-rural income gap.Through the impulse response function shows that the urbanization will narrow the income gap between urban and rural areas.Finally,according to the results of the study,we put forward the relevant policies.