On the Influence Mechanism of Urbanization on the Income Gap between Urban and Rural Areas——Based on an Empirical Analysis of the Income Gap between Urban and Rural Areas in Fujian Province

In order to explore the specific influence of urbanization on the income gap between urban and rural areas,this paper analyzes the correlation of the income gap between urban and rural areas and urbanization,and the influence of urbanization on narrowing the income gap between urban and rural areas by combining normative and empirical analysis. Data analysis shows that the income gap between urban and rural areas in Fujian province is at a rising stage of inverted U type,meaning a positive correlation between urbanization and the income gap between urban and rural areas. Starting from government acts,government- dominating urbanization indirectly affects agricultural enterprises' decisions,and further affects the agricultural development which plays an important role in the income gap between urban and rural areas. By establishing the VAR model,the conclusion of the impulse response analysis further confirms the influence mechanism. So the acceleration of urbanization led by government acts,the reform of the household registration system,the adjustment of agricultural economic structure,and the realization of agricultural modernization are effective measures to narrow the income gap between urban and rural areas.