The Co-integration Analysis and Granger Causality Test between Urban-rural Income Gap and Urbanization in China

摘要

Using time series of 1978-2010 between urban-rural income gap and Urbanization,via the quantitative methods of ADF unit root test,co-integration analysis,Granger causality test,etc.a co-integration equation is established,and the Interactive relationship between urban-rural income gap and Urbanization is revealed.The analysis outcomes indicate that urban-rural income gap and Urbanization has stable long-term balanced relationship during 30 years since the reform and opening up,and as the continuous development of urbanization,urban-rural income gap appear to be widened gradually; The result of Granger causality test shows that unidirectional causal relationship exists between the two variables,and it takes on certain lagging nature.Accordingly,relative policy suggestions are proposed.