Abstract

The purpose of the study is to review the real situations of the income-gap between urban and rural areas which is focused on as one of the biggest issues revealed in the process of Chinese economic development and to find out which factors will alleviate or deteriorate such income-gap, also to find out such factors will effect differently on the regional characteristics. To analyze it, six factors such as industrialization-ratio, urbanization-ratio, tertiary industry-ratio, the level of both governmental educational support and agricultural support, and Chinese dual-economic structure are considered as explanatory variables, and OLS regression analysis was implemented to the factor data for the period of 1986-2007 about Chinese 31 districts(castles and cities). The results of the analysis show that both industrialization factors and urbanization factors affect significantly to alleviate income-gap between urban and rural areas, and as predicted, they also shows that dual-economic structure between urban and rural areas is the most biggest factors to enlarge the above mentioned income-gap. However, in accordance to the different level of economic development in eastern, central, and western districts the study shows that such factors will affect them differently respectively. The contents are as follows; In eastern district governmental educational support factor will affect the most great influence to alleviate the income-gap, in central district industrialization factor will affect the most great influence to alleviate the gap, and western district governmental agricultural support factor will affect the most great influence to alleviate the gap. Therefore, in solving the issue of income-gap between urban and rural areas in China we recommend that it is necessary for more differential policy in considering regional characteristics than unilateral policy to Chinese whole areas.