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Factor Mobility, Feeding Effects and Urban-Rural Economic Integration:On the Evolution of Urban-Rural gap of 60 Years
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TitleFactor Mobility, Feeding Effects and Urban-Rural Economic Integration:On the Evolution of Urban-Rural gap of 60 Years  
AuthorBai Yongxiu and Liu Ruiming  
OrganizationSchool of Economics and Management, Northwest University 
Emailwp183 
Key WordsFactor Mobility; Feeding Effects; Urban-Rural Economic Gap 
AbstractWidening gap between urban and rural areas constitutes a major worry of China's economic development. What factors make urban-rural gap widening? How to reduce the gap between urban and rural areas? This paper argues that, in the process of urban and rural competition, the production efficiency gap between urban and rural areas and market polarization effect makes the rural-urban income disparities. Given the factor mobility conditions, the country's urban bias policies exacerbated the gap. This logic can explains not only the pre-reform urban-rural income inequality, but also the post-reform evolution of urban-rural income gap, so the Urban-rural gap’s evolution of China in the past 60 years can be well explained. Our findings show that, a series of agricultural support policies which the state recently implemented has a positive effect on the suppression of the expansion of urban-rural gap, but more importantly, we should improve agricultural production efficiency through the agricultural land reform and social security reform. Thus promote urban-rural economic integration.from the two aspects of "inside" and "outside". 
Serial Numberyongxiubai@yahoo.com.cn,lrmjj@126.com 
Time2012-02-14 
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