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Research on the Income Disparity between Urban and Rural Residents of Shandong Province

Author: HanSuFang
Tutor: RenJianLan
School: Shandong Normal University
Course: Regional Economics
Keywords: Shandong income gap between urban and rural residents reasons Countermeasures
CLC: F126
Type: Master's thesis
Year: 2009
Downloads: 431
Quote: 6
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Abstract

Income gap is a necessary phenomenon during the development of developing countries. As one of the biggest agricultural provinces, the problem of income gap is very severe in Shandong province. Since 1978, the total economics of Shandong province has developed rapidly. However, the imbalance development has existed in urban and rural areas and the disparity is the expansion of the trend. So how to develop agricultural production, increase farmers’income and reduce the disparity between the urban and rural seems very important in Shandong province.By carefully studying on a large amount of research and information, this author study on the income disparity between urban and rural inhabitant in Shandong province by adopting the methods of combination of theoretical literature and positive analysis as well as the quantitative analysis and qualitative analysis. Based on the analysis, finding the influential factor of income gap between rural and urban inhabitant, establishing mathematical economical models to test them, proposing some suggesting to increase farmers’income and minimize the income gap between rural and urban inhabitants.Since reform and opening, absolute income gap of urban and rural residents has expanded clearly in Shandong province. The income gap between urban and rural residents have experienced first to expand again after narrowing to narrow further to expand the overall trend, with the national changes in trends have remained fairly consistent from the relative income gap, Urban-rural income ratio is slightly lower than the national. And Gini coefficient of urban and rural residents increased year by year. In space, compared with the relationship of relative gap between the province and the city average and the differences of the relative gap among the city changes, between the east and the west compared the gap between urban and rural incomes, and the income gap between urban and rural residents across the province carried out by type.The author analyzes the reasons that cause income gap between urban and rural residents in Shandong from qualitative and quantitative aspects. There are many reasons causing income gap from qualitative aspect, so the author summarizes them from nature, economic, society. In urban and rural areas inhabited by different ways, urban and rural location of the differences are the nature reasons; differences between urban and rural labor productivity, differences between urban and rural industrial properties, Non-agricultural industries lack of development potential in rural areas, the market economy-induced movement of production factors is the income gap between urban and rural residents are the economic reasons; demographic factors, institutional factors,policy factors are the social reasons. We can’t explain the extent to which each factor impacts on income gap by qualitative analysis, so the author uses EViews statistical software to do some quantitative analysis. She concludes that total agricultural output value reached with the industrial output value of the ratio is the most important in easing income gap, the second is financial support from the agricultural expenditure proportion of fiscal expenditure, the third is rural fixed assets investment in urban fixed assets investment and between the ratio, the fourth is the GDP growth rate and the least important one is non-agricultural population accounts for the proportion of the total population.Finally, the author proposes that the countermeasures include vigorously develop the rural economy, policy reform, vigorously develop rural public utilities to narrow the income gap between urban and rural residents. We should develop the rural economy by changing the ways of agricultural growth and developing rural non-agricultural industries. We should reform policy by unifying urban and rural household registration system, adjusting fiscal policy step up financial to support for agriculture spending, reforming land requisition system; We should develop rural public utilities by improving rural human capital investment, strengthening rural infrastructure, overall planning urban and rural social security.

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