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The Research on Relevance of the Urbanization and Income Gap between the Urban and Rural

Author: YangXiaoLong
Tutor: MengXiangZhong
Course: Western Economics
Keywords: Gini Coefficient Urbanization Rate Income Gap
CLC: F124.7
Type: Master's thesis
Year: 2014
Downloads: 3
Quote: 0
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Since reform and opening up, China’s economic development and social progress hasattracted worldwide attention. But, China also faces the domestic income distribution gapand a series of problems. How to reduce the excessive income gap is a hot issue in today’sChinese economy research. It is generally believed that speeding up China’s ruralurbanization process should be one of paths of narrow income gap.Based on the current China’s income gap between urban and rural areas andurbanization development, the paper selects urbanization rate and the Gini coefficientindex between urban and rural, showing the mechanism of action of urbanization on theincome gap between urban and rural areas by building mathematical model. The resultsprove that a similar coontz kuznets inverted u-shaped curve exist, namely, with theimprovement of urbanization rate, the income gap between urban and rural areas in Chinashows the tendency of increase before narrowing. The empirical analysis shows that Ginicoefficient between urban and rural areas in China is not a simple linear relationshipbetween the urbanization rate but the existing complex quadratic term relationship. Theturning point of the inverted U curve appears about in the year of between2007and2010.At present our country has already entered into decline stage of the inverted U curve, withthe improvement of urbanization rate, the income gap between rural and urban areas willgradually narrow.The lag of urbanization will lead to the income gap more unreasonable. On thecontrary, the development of urbanization will narrow the income gap and make the Ginicoefficient more reasonable. Based on this conclusion, the paper puts forward the targetedcountermeasures to improve the urbanization to narrow the income gap between urban andrural areas in China. China’s current main task will be to speed up the construction level ofurbanization in our country, raise the urbanization rate, reduce the Gini coefficient, in orderto achieve the purpose of narrowing the income gap between urban and rural areas.

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CLC: > Economic > The world economic profiles,economic history,economic geography > China's economy > Economic construction and development > National income, national wealth
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