MEASURING THE EVOLUTION OF URBAN AND RURAL ECONOMIC RELATIONSHIP-AN INPUT-OUTPUT PERSPECTIVE

The purpose of the paper is to explore the wealth generating processing of rural economy and mutual dependent relationship between urban and rural economies using Input-Output(I-O) techniques.With matrix decomposition technique,it identifies the wealth of rural economy is generated by internal and external multipliers of rural economy,and the leaking effect from urban economy to rural economy.Based on the case study of Beijing from 1985-2007,this I-O analysis generates a new perspective of urban-rural economic relationship.On the initial stage of urbanization and privatization,rural economic development is predominately benefited from the urban leaking effect.This situation is reversed with dualistic urban and rural realms,and rural economy is self-generated when labor is attracted and land is claimed by the urban development.Such dualistic structure yet creates a lot of social and environmental problems.Urban economy has to contribute to rural economy,particularly at the stage of advanced economic development or post-urbanization.The study verifies rural economic development is much dependent on the urban economy;such dependence is about 60-70% and much larger in the consequent integrated urban-rural development.Facing the fact that rural economic development is largely contributed by the urban,it need prioritize its food security,ecological and social function.