The Effect Of Rural Industry Revitalization On Urban-rural Income Gap

It is another great victory for scientific socialism in our country to finish building a moderately prosperous society in all respects and achieve comprehensive poverty alleviation.At the same time,it also marked that the focus of rural work has changed from "focusing on poverty alleviation" to "gradually narrowing the urban-rural income gap and realizing common prosperity for the people".According to the income data released by the National Bureau of Statistics,China’s urban-rural income ratio has dropped from 3.28 in 2006 to 2.56 in 2020.However,according to the data of the European Union,the urban-rural income ratio of most developed countries is below 1.25,which shows that China still has a long way to go to achieve common prosperity.As the urban-rural dual structure still exists,urban-rural development is not balanced,and the siphon effect of urban on rural population is also severe,which makes it difficult to eliminate the urban-rural income gap at the present stage.Therefore,how to improve the income of rural residents,increase rural social welfare,narrow the urban-rural income gap,break the urban-rural dual structure is the key issue to achieve common prosperity of all people at this stage."A strong industry makes all industries strong;If the industry prospers,all industries prosper.If the countryside wants to develop,it must develop industries to enhance the "hematopoietic ability" of the countryside itself.Therefore,industrial revitalization is to solve the problem of "three rural",realize the modernization of agricultural industry,narrow the gap between urban and rural fundamental.In view of this,from a theoretical perspective,this thesis uses literature analysis to extensively learn from the valuable experience of predecessors and combines with relevant government documents to define the basic connotation of rural industry revitalization and leads to the purpose and significance of this study.Based on the summary of previous literature on rural industry revitalization and dual economy,this thesis finds that the improvement of rural industry may have a positive impact on narrowing the urban-rural income gap,and the impact may be realized through the intermediary effect of rural economic growth.In order to verify this conjecture,this thesis constructs a comprehensive evaluation index system of rural industry revitalization from the four dimensions of agricultural development,three-industry integration,green innovation and urban-rural industrial coordination,and synthesizes the above four dimensions into a comprehensive index of rural industry development using entropy weight method.Furthermore,this thesis uses this index and two-way fixed effect model to conduct an empirical test on industrial revitalization and urban-rural income gap.The results show that rural industrial development can indeed narrow urban-rural income gap.And this empirical conclusion is still robust after changing explanatory variables and using stepwise regression and sub-regression.In order to solve the problem of possible missing variables and reverse causality,this thesis uses the development level of rural industry one stage behind as an instrumental variable to conduct endogeneity test,and the main conclusions are still significant.In the further study,this thesis uses rural economic growth as an intermediary variable to build an intermediary effect model,and finds that rural industrial development mainly realizes the income gap between urban and rural areas through rural economic growth.The study of heterogeneity shows that industrial development reduces the income gap between urban and rural areas significantly in the three regions,while the eastern region has the strongest effect,followed by the western region,and the central region is the weakest.The main innovations of this thesis are as follows:(1)From the perspective of research,this thesis organically connects rural industry revitalization and urban-rural income gap through rural economic growth to broaden the research horizon of urban-rural income gap,and at the same time provides new ideas for the development of rural industries.It has certain guiding significance for consolidating the current rural poverty alleviation achievements,preventing the return to poverty and reducing the relative poverty between urban and rural areas.(2)In the construction of index system.This thesis breaks the traditional structure of primary,secondary and tertiary industries,and expands the dimensions of rural green innovation and industrial coordination on the basis of the existing index system by analyzing the basic connotation of rural industrial revitalization,thus enriching the research results of this thesis.