Urbanization, Industrialization and Urban-Rural Income Gap: Inspection by Panel VAR Based on the Provincial Panel Data

This paper put urbanization, industrialization and urban-rural income gap in a system model, analysis the dynamic interaction mechanism between urbanization, industrialization and urban-rural income gap. Inspection by Panel VAR based on the provincial panel data of 31 provinces and cities in China from 1997 to 2013. The research shows that there is obviously nonlinear relationship between urbanization and urban-rural income gap, but in the long run, urbanization is conducive to narrow the urban-rural income gap; there is benign circulation interactive relation between industrialization and urban-rural income gap; in the long run industrialization and urbanization are not conducive to the development of each other.