An Empirical Study on the Urbanization,Industrialization and Urban-rural Income Gap in China

Using the panel data of China's 31 provinces from 1997 to 2010,the paper establishes the econometric model to study the effect of the income gap between urban and rural areas as result of urbanization and industrialization.The results show that urbanization narrows the income gap and consumption gap between urban and rural residents,and the effect of narrowing the gap between urban and rural areas is the largest in the western region,which is followed by the middle region;Industrialization expands the urban-rural income gap and consumption gap,while in the western region this effect is more prominent.