Research on the relationship between urbanization, industrial structure and urban-rural income gap-Taking Sichuan province as an example

Abstract

This paper selects three indicators of urbanization, industrial structure and urban-rural income gap to construct a three-dimensional VAR model. Through Granger causality test, impulse response function and variance decomposition methods, a dynamic analysis of urbanization and industrial structure on urban-rural income gap in Sichuan Province has been carried out. The research shows that: urbanization and industrial structure have an important impact on the urban-rural income gap in Sichuan Province. Urbanization and the urban-rural income gap present a “U-shaped” relationship, that is, in the initial stage when the level of urbanization increases, the urban-rural income gap will be narrowed, and when urbanization develops to a certain degree, the gap will gradually be widened. The relationship between the industrial structure and the urban-rural income gap is an “inverted U-shaped” relationship, that is, the urban-rural income gap will be widened when the industrial structure is at a lower level. As the industrial structure is optimized and upgraded, the gap will gradually be narrowed.