The Mechanism And Empirical Analysis Of Urban-Rural Income Gap In China’s Urbanization Process

China economic have got tremendous development in these 40 years since the reform and opening-up,however,the income gap is always big and Gink coefficient is keeping higher than international warning line 0.4,the big income gap becomes the most urgency to be faced and solved in China at this present stage.Income gap is divided into urban-rural gap,urban interior gap and rural interior gap and the urban-rural gap gives the largest contribution to income gap of China between urban-rural.Urbanization will affect the urban-rural income gap along with the flow of labor,land,finance,and other resources between urban and rural areas.The new-type urbanization requires it takes human as the core element more and improve the quality,benefit the people and increase farmers income.so whether the process of urbanization enlarge the urban-rural income gap or not?It is having an important meaning to research and analysis the effect of urban-rural income gap by the process of urbanization so as to eliminate of the binary structure and achieve common prosperity for the whole country.For finding out the effect of urban-rural income gap by process of urbanization,this article uses the method combined theoretical analysis with empirical analysis to analysis the relationship between urbanization and urban-rural income gap.In theoretical analysis phase,this article finds that the urbanization process takes the effect of inverted"U" curve which expand first and then shrink on urban-rural income gap by mars and Engels urban-rural integration theory,binary economic theory,growth pole theory and Kuznets curve theory.In the empirical analysis section,the paper first empirically examines the inverted "U" curve relationship between urbanization and urban-rural income gap based on the provincial panel data of 29 provinces and cities in China from 1998 to 2015.The empirical test results show that There is a significant inverted "U"relationship between urbanization and urban-rural income gap.For further analyzing different effects of urban-rural income gap caused by urbanization process in different areas,this article further divides nationwide into east,center and west(Beijing/Tianjin/Shanghai removed)to research the relationship between urbanization and urban-rural income gap separately.The result of research shows that there is an obvious inverted "U" curve between urbanization and urban-rural income gap in east,midland and west,however,the thresholds which change from enlargement to shrinking are different,the east,center and west are 54%,44%,and 50%,respectively,the east and midland had arrived in the right end of the inverted"U" curve and the west urbanization rate will arrive the threshold in the next four years.This article also research the economic development level,local government expenditure,industrial structure,financial development,trade,FDI and FAI except urbanization,which take effect on urban-rural income gap.The empirical result shows that industrial structure,financial development,trade,FDI and FAI take a significant effect on urban-rural income gap,however,economic development level and local government expenditure take less effect.