| From the beginning time of reform and open,China’s economy has grown rapidly.But the economic growth rate has decreased year by year since 2010.The economic structure needs to be improved.Material capital and human capital are the main power of economic growth,and the changes of them which brought about by urban-rural income inequality will directly affect China’s economy.Xi Jinping proposed to narrow the urban-rural income inequality and improve their living standards,which indicating that solving the urban-rural income inequality is still the focus of attention.According to Kuznets’ inverted U-shaped theory,it has practical significance to test whether the urban-rural income inequality in China presents an inverted U-shaped relationship with economic growth.Due to the differences between urban and rural economy,there are differences in the complexity of production products(the differences in the knowledge and technology contained in the products).It affects urban and rural residents’ income,resulting in the inequality of income.Therefore,this paper has important theoretical and practical significance to explore the connection between urban-rural income gap and economic growth,and to explore its internal mechanism from the capital accumulation and production structure.This paper selected the panel data of 43 years since 1978,built the simultaneous equation model,and used the method of 3sls to finish empirical test.There are four hypothesis.The research shows: First,the expansion of the urban-rural income inequality will improve the social material capital accumulation,and promote economic growth.Second,the narrowing of the urban-rural income inequality improve the quality of human capital,and the promoting the economic growth.Third,as the growth of economic,income inequality between them shows an obvious inverted U-shaped connection,and now China has reached the right side of it.Fourth,the growth of economic drives the improvement of economic complexity,and then reduces the income inequality.And human capital accumulation and traffic conditions are the main factors affecting the improvement of complexity.According to the empirical results,the relationship between them can achieve a virtuous cycle.The narrowing of income inequality can promote the growth of economic through the improvement of human capital accumulation.And then economic growth brings the change of production structure to improve economic complexity.Further the improvement of economic complexity narrows the urban-rural income inequality.Finally,put forward the countermeasures. |
