Abstract
The academia always argue about whether there is a Kuznets curve for a long time, however, rare people care about Kuznets curve in countryside. The thesis first analyzes the possibility of the Kuznets curve in China’ rural area theoretically; and then based on the provincial panel data, the thesis adopts fixed effect and random effect models to analyze the relationship between China’s rural economic growth and income distribution inequality among rural residents, so as to verify whether the Kuznets curve is applicable in the rural area of our country. The results show that there is a Kuznets curve in the process of rural economic development in China, namely there is a reversed U-shaped relationship between rural economic growth and income inequality within rural residents. At the same time, the economic growth of most provinces has not yet reached the inflection point to reduce the income inequality degree.
Highlights
1) In order to testify whether there is an inverted U-shaped relationship resembling that of Kuznets curve between China’s rural economic development and rural residents’ income gap, the thesis selects explanatory variables and control variables according to the relevant literature to define the following two measurement model groups [15] [16]: ( ) GINIit =β0 + β1Yit + β2 Yit 2 + β3Controlit + εit GINIit = β0 + β1 ln Yit + β22 + β3Controlit + εit
The thesis discusses theoretical basis of Kurtz curves in rural China based on dual economy theory and regional unbalanced development theory
To narrow the income gap of rural residents as soon as possible, the thesis offers some suggestions based on the results of empirical analysis: 1. Continuing to increase policy support to rural areas, promoting economic development in rural areas
Summary
With over 30 years of reform and opening up, China’s economic development and urbanization construction made remarkable achievements, especially its GDP, which has created a Chinese development miracle with an average annual growth rate of nearly 10%. In the the rapid economic development goes with the increasingly larger income gap among residents of our society. According to Report on Chinese Economic Conditions in Rural Areas released by. With the rapid development of rural economy, rural residents’ income gap is increasingly expanding at the same time, which affects social stability in rural areas. Correct understanding and handling of the contradiction between rural economy development and income distribution influences the overall situation of reform and development in rural areas, and the possibility to realize a new socialist countryside goal
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