Research on the Factors Influencing the Income Level of Urban Residents in Guangzhou

Abstract

High-quality development is a new requirement for China’s economic development in the new era. This paper selects the ownership structure, urbanization level and openness as the influencing factors of urban residents’ income level in Guangzhou, and uses vector autoregressive model (VAR) to empirically analyze the mutual values between Guangzhou City’s 1998-2017 variables and urban residents’ income levels. The results show that the two-way causal relationship between urban residents’ income level and urbanization is the most significant. The change of ownership structure has the highest contribution to the fluctuation of urban residents’ income level, and on this basis, relevant policy recommendations are put forward.