Can Urbanization Development Narrow Urban-rural Income Gap in China?
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| Title | Can Urbanization Development Narrow Urban-rural Income Gap in China?
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| Author | Su Chiwei,Si Dengkui and Xu Sheng |
| Organization | School of Economics, Ocean University of China |
| Email | cwsu7137@gmail.com，sidkfinance@gmail.com，xusheng@ouc.edu.cn |
| Key Words | Urbanization; Urban-rural Income Gap; Fourier Function; Structural Breaks; Convergence |
| Abstract | This paper combines new classical dual economic theory and regional economic theory to measure urban-rural income gap, dividing the 30 provinces (municipalities and autonomous regions) into four integrated economic areas. We use flexible Fourier function proposed by Enders and Lee (2012) to test the stability of inter-provincial urban-rural income gap, it has the high power to capture “U” shape structure and smooth point mutation. The empirical results show that the income gap between urban and rural is obviously heterogeneity in China; the income gap of Southwest integrated economic area is convergence and stable. The main features of convergence areas are focusing on developing agriculture, loosing the free flowing of migrant workers, implementing anti-poverty mechanism and improving the social security system to raise the income of farmers with narrowing urban-rural income gap in accordance with the characteristic of urbanization process, the dual structure development model was broken. The income gap of Northwest integrated economic area, South integrated economic area (except for Guangdong and Hainan) and North integrated economic area (except Shaanxi) show diverging trends, indicating that the diverging areas fit the dual economic structural theory. The government should take measures to reduce the urban-rural income gap in these regions. |
| Serial Number | WP681 |
| Time | 2014-09-02 |
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