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Inverted U curve starting from Kuzenets urban-rural income gap study in Shanghai

Author: WangMin
Tutor: LiaoYuanHe
School: Chongqing Normal University
Course: Regional Economics
Keywords: Shanghai Urban-rural income gap Urban-rural income gap relative Kuznets inverted-U hypothesis
CLC: F224
Type: Master's thesis
Year: 2011
Downloads: 86
Quote: 0
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Abstract

This paper analyzes the income gap between urban and rural areas of Shanghai actual situation, found: Shanghai's urban-rural income gap since 1994 is definitely the beginning has been higher than the national average, but the relative gap is 1989-2009 years has been significantly below the national level. On this basis, the use of urban-rural income ratio to measure the relative income gap between urban and rural areas of Shanghai, and combined Kuznets inverted U hypothesis given theoretical analysis, found that: Shanghai's urban-rural income gap has been relatively inverted U-curve peak, the next should be as the increase in the total economy gradually narrowing. Accordingly, this final conclusion: Shanghai urban-rural income gap is relatively good condition. Although the income gap between urban and rural areas of Shanghai Economic theory research results are more favorable, but that does not mean that Shanghai urban-rural income gap has been resolved or that Shanghai urban-rural income gap is no longer a problem, the problem does not mean that the government can take faire attitude to the invisible hand of the market to adjust it automatically. Economic fact that the economy has been countless times the normal operation of the need for government intervention in certain, especially in the case of market failure. Urban-rural income gap is the presence of the performance of market failure, which requires government intervention. Indeed, as China's building a moderately prosperous society unfolds, people's livelihood has increasingly become the focus of attention. Shanghai urban-rural income gap should move forward in the direction to be a better solution, rather than just hoping inverted U curve shows the urban-rural income gap relative to the natural shrinking trend. Shanghai urban-rural income gap on many factors influence a more comprehensive analysis and model checking, the articles draw the main factors are: per capita GDP, social security coverage and dual economic factor. Where per capita GDP is expressed as an inverted U hypothesis as the first expansion after narrowing the urban-rural income gap relative, the expansion of social security coverage increases the relative income gap between urban and rural dual economic factors and urban-rural income gap relative to reverse changes. In addition, the article also discusses not included in the model takes into account both institutional factors, namely: the household registration system and financial developments. These two factors, the income gap between urban and rural areas of Shanghai mechanism also carried out a more detailed analysis: in Shanghai hukou household registration system between urban and rural areas caused by inequalities in social security. Financial Development in the general case of imperfect market conditions restricted the rural economic development of blood (financial capital), and too much to be concentrated in urban areas, will exacerbate the income gap between urban and rural areas. On this basis, combined with successful experience of developed countries, the article from Shanghai to improve the per capita GDP, improve urban and rural social security system, changing three aspects of urban-rural dual economic structure proposed to further narrow the income gap between urban and rural areas of Shanghai recommendations. Shanghai to improve the per capita GDP, the article suggests to accelerate the development of tertiary industries in Shanghai, in order to protect and develop rural agriculture, the development of rural financial supplement; improve urban and rural social security system, the article suggests first of all concentrate on solving the problem of household registration system, if not When the second best efforts to resolve the Shanghai urban and rural social security system, improve the work; transformation of dual economic structure, the article from the perspective of the dual economic factors suggest Shanghai should increase efforts to develop the secondary industries, output rate and personnel to improve the tertiary industries.

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