A Study on the Influence of Economic Growth on Urban-Rural Income Gap in Five Northwest Provinces Based on Unit Root and Co-integration Test

Abstract

AbstractTo provide better policy suggestion, and clarify the impact of economic growth on urban-rural income gap in the five provinces of northwest China, unit root test and Co-integration test were conducted on the data, which are from relevant contents of the National Bureau of Statistics of Gansu, Shaanxi, Qinghai, Ningxia Hui Autonomous Region and Xinjiang Uygur Autonomous Region, and a corrected error model was built to explore the impact of economic growth on urban-rural income gap. Results show that the absolute gap in the five north-western provinces is widening, but the relative gap is narrowing. Thus we know that economic growth is negatively correlated with the gap between the rich and the poor in the five northwest provinces. The economic growth of the five northwest provinces is already in the third stage of the “inverted U” model, of which economic growth is conducive to help the northwest region out of poverty, promote social fairness, and accelerate the pace of build a well-off society in an all-round way.KeywordsFive north-western provincesUrban-rural income gapUnit root and co-integration testCorrected error modelPolicy recommendations