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A Study on Nonlinear Effect between Factor Flow and Urban-rural Economic Integration in China——Empirical test based on provincial panel data

Zhao Kangjie;Jing Puqiu;  
The free flow of factors is the premise of urban and rural economic integration and integrated development. Combing the improvement of efficiency and equity of urban and rural economic development in China since 2001,it is found that economic development,income growth between urban and rural residents and income gap between urban and rural areas show " inverted U-type" nonlinear relationship. The empirical test shows that the economic development and urban-rural income gap have entered the " inverted U-type" curve decline stage. The non-farm employment,financial development,financial supporting agriculture,land finance and other factors is conducive to raising the income level of urban and rural residents,but narrowing the urban-rural income gap. Regional heterogeneity test shows that the dominant factors of income increase of urban and rural residents in east,northeast,middle and West regions are different,and there are regional differences in the nonlinear relationship between economic development,factor flow and urban-rural income gap. Threshold effect test shows that non-farm employment,financial agriculture and rural-urban income gap is positively correlated,but the coefficient decreases,reflecting the tendency to reduce the income gap between urban and rural areas,financial development is conducive to narrowing the income gap between urban and rural areas,but decreases with the increase of financial development level. Finally,some suggestions are put forward from the aspects of improving the level of regional economic development,optimizing the allocation of urban and rural factors,and adopting regional differentiation measures.
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