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Analysis of Income Gap between Urban and Rural Residents and Its Influencing Factors in Liaoning

Author: WangZuo
Tutor: ZhengYongBing
School: Dongbei University of Finance
Course: Quantitative Economics
Keywords: Income gap between urban and rural residents structure relative factor R/S fractal Data Envelopment Analysis
CLC: F127
Type: Master's thesis
Year: 2011
Downloads: 95
Quote: 0
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Abstract

After the reform and opening. China’s economic has developed rapidly, people’s living standards have greatly improved, but the happiness have not improved synchronously, the unfair distribution of income is one of the main reasons lead to this problem, in China, there is now a serious wealth gap. during the past two years. Gini coefficient has past 0.5.In this paper.I will do some research on the income gap between urban and rural residents. In China, regional income disparity is also occupied an important position, in order to rule out the interference of regional gap, this paper will choose the income gap between urban and rural residents in Liaoning province as the research object.This paper is divided into six parts:The first part is an introduction, including the background of this paper, issues, content and methods of this paper are briefly introduced.In the second part, there will be a briefly reviewed of the relative research.The third part of this paper will use the structure of relative factor method to measure the income gap between urban and rural residents in Liaoning. according to the structural difference between the relative factor, the study found that the income gap between urban and rural residents in Liaoning province shows obviously phase characteristics. At first, it shows a significant reduction, and then a general amplifier, from 1995 to 1998 it has a short narrow, after that it has quickly amplified. since the year 2004, it has become slight increase in stability, each stage it has unique features, but they all reflect the characteristics of political economy at that time.The fourth part is to forecast the future trend of income gap between urban and rural residents in Liaoning Province, this article will use fractal analysis method to analyse structure relative coefficient of the income gap between urban and rural residents in Liaoning Province, first, by match points function method, to determine the sequence is single fractal process, and then use R/S method to calculate the Hurst Power, and the results showed that in the next few years, the income gap between urban and rural residents in Liaoning Province will slowly incline to a stable value. The fifth part will analyse the influencing factors of the income gap between urban and rural results with the Data Envelopment Analysis(DEA) method.with the reciprocal of structural difference between the relative factor as a single output index. choose the Liaoning Province urbanization rate, year-end balance of agricultural loans, expenditure on education, and the total amount of import and export as the input index. Through the model we can find that only in 2000.2001 and 2002 is DEA effective, and theθvalue is diminishing, and increasing input is advantageous; But of the current level of income gap. the expenditure on education, agricultural loans and total import and export volume has certain redundancy, in order to adjust current income gap between urban and rural residents of input should be adjust.In the last part of the paper is some suggestions on the future development of liaoning province:first, help and support the reasonable personnel flow, not only means the peasants migrant workers but also should encourage outstanding talents to work in the countryside, who can lead the local economic development. Second, the government should increase the education investment, especially in rural areas, to increase the education facilities and strengthen the teacher’s professional capability are helpful. Third, we need to provide convenient loans to peasants, to avoid the shortage of money for the opportunities. Fourth, improve the investment environment in rural areas and promote peasants obtain employment. Fifth, to perfect the social security system, satisfy people’s basic survival and life need.

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