Research of the Economic Egglomeration and the Income Gap in China

This paper is based on the theory of the New Economic Geography model,take an analysis micro-mechanism of the formation on among the industrial concentration,urbanization integrated level,population ratios of urbanization and the income gap from the view of the spatial agglomeration of economical activity. We mainly found by 1993 to 2009 up 17 years of data analysis: the effect mechanism on income gap of the agglomeration of economic activities in space shows pros and cons of two sides,that is to say,because of the local market effect and the related effect-mechanism of forward and backward,the improvement of industrial concentration and urbanization integrated has played a role of reducing the income gap,while population ratios of urbanization has expanded the trend of income gap within critical value range. We believe that,when adopting policies,it should be taken into account the different effects of the policy,or even both positive and negative effects,when expanding the positive effect,suppressing the negative effects as far as possible.