Gap between Urban and Rural Economic Development in Less Developed Areas — A Case of Northern Jiangsu Area, China

Taking northern Jiangsu area as an example, economic disparity between urban and rural areas is described according to the data in 2000-2009 Jiangsu Statistical Yearbook. Result shows that there are significant differences in the rural and urban economic development in less developed areas, which are mainly reflected in the differences in per capita income, living standard, and Engel coefficient. Reasons for urban and rural economic disparity in less developed areas are analyzed. The asymmetry and immobility of rural and urban resources have objectively caused the income gap between urban and rural residents; urban industrial development, which is faster than agricultural development, has widened the income gap between urban and rural residents; and the differences in comparative labor productivity in rural and urban areas have enlarged their income gap. Countermeasures to minimize the urban and rural economic development gap are put forward, such as deepening the reform, realizing the free flow of economic resources between urban and rural areas, developing rural areas through urban development, exerting the function of urban areas in the coordinated development of urban and rural areas, paying attention to the agriculture and rural areas, and improving the comparative labor productivity of agriculture.