Research on the Influence of Digital Economy on the Income Gap between Urban and Rural Areas in China

In recent years,with the rapid advancement of information technology and the widespread proliferation of the Internet,digital technology has been reshaping the value chains of traditional industries and giving rise to entirely new business models and industrial forms.Technologies such as the Internet,big data,and artificial intelligence are being applied across various sectors,while new formats like e-commerce,the sharing economy,and online education are flourishing.These developments have driven new consumption patterns and employment methods.The rapid rise of the digital economy not only boosts production efficiency and economic growth but also influences the income distribution between urban and rural areas to some extent.This paper begins by examining the current state and characteristics of the digital economy and then analyzes its impact on the urban-rural income gap.Additionally,it offers countermeasures and recommendations for narrowing this gap,providing theoretical support for promoting common prosperity.

Four Decades of China's Income Distribution Reform

Income gaps in China kept widening over the past four decades of economic transition. First, this paper describes the change in income gaps before and after reform and opening-up in 1978 and found that income gaps had been expanding between urban and rural areas, within cities and within the countryside. However, this did not lead to income polarization since low-income groups only had a slower income growth compared with highincome groups. The number of poor people continuously reduced thanks to rapid economic growth. Over the past decade, the widening of income gaps has been initially curbed. Accordingly, we explained the impact of economic transition on income distribution from the perspectives of market-based distribution, ownership structure, opening-up and internal income distribution. Lastly, this paper provides an in-depth analysis on urban-rural income gaps, excessive compensation in monopolistic sectors and income inequalities arising from corruption. To address these problems, it is important to enhance tax regulation, increase transfer payments to poor people, improve social security, equalize public services, enhance poverty relief and develop a fairer income distribution system.

Effects of Social Security Spending on Income Distribution and Poverty Reduction in China

Reasonable income distribution and eradication of rural poverty are vital for building a moderately prosperous society in all respects in China.This paper primarily examines the income distribution and poverty reduction effects of social security spending.Market income and redistribution policies are two determinants of income gaps.Based on CHIP2018 household survey data,we find that inadequate income redistribution policies have contributed to yawning income gaps,and that social security spending is more redistributive than personal income tax and social security contributions.After estimating the redistribution effects of social security spending and itemized incomes,we find that pension payments have contributed the most to household income gaps,and that subsistence protection and rural pension payments help improve income distribution.With respect to the poverty reduction effects of social security spending,we have estimated China’s current poverty incidence and the poverty reduction effects of pension payments,healthcare,and educational allowances with CHIP2018 data,and discover that an increase in social security spending may effectively reduce rural poverty.In building a moderately prosperous society in all respects,China should increase social security spending,focusing on specific target groups,and promote the role of social security spending in regulating income distribution and offering social protection to rural residents.

The Approaches to Narrowing Urban-Rural Income Gap——From the Perspective of Rural Social Security

From the situations about the incomes and life quality of the urban and rural residents,the thesis briefly introduces the status quo of the urban-rural income gap and explores the impact of the income gap on social economy:firstly,it hampers economic development;secondly,it is detrimental to the social development.Then the thesis analyzes the role of a sound social security in narrowing urban-rural income gap:at first,it broadens the institutional environment of improving the agricultural efficiency;secondly,it eliminates the uncertainties influencing the farmers' income;thirdly,it improves the farmers' capacity to increase income;at last,it enhances the farmers' consciousness of wealth.Next the thesis inquires into the problems existing in the system of rural social security:the first problem is more obviously fragmented system;the second is inadequate security projects and narrower coverage;the third is an obvious lack of equality in urban and rural security;the fourth is even less sound management system;the last is the lagging of legislation.Afterwards the thesis proposes the countermeasures and suggestions to improve the system of rural social security and narrow urban-rural income gap:firstly,to integrate the social security system in rural areas;secondly,to perfect security projects and enhance the security system;thirdly,to integrate the administrative management of social security;at last,to enforce the legal system.

Wage and Income Distribution in China:Review and Outlook

Under the planned economy,China’s distribution relations were relations among the state,state-run enterprises,employees and the collective economy;relations between heavy industry and light industry;and relations between cities and the countryside.After China’s transition to a market-oriented economy,the distribution relations among the state,state-run enterprises and employees evolved into distribution relations between the government,enterprises and households;the distribution relations between heavy industry and light industry evolved into distribution relations between the state sector and the private sector;and the distribution relations between cities and the countryside evolved into distribution relations between original urban dwellers and migrant populations.Wage system reform was carried out throughout the transition of these three types of distribution relations.Income distribution contradictions in China,which are a problem left over from history and intrinsic to the market-based economy,eased over the years.Some people and regions achieved prosperity,and urban-rural and interregional income gaps narrowed.However,widening household income gaps pose barriers to China’s economic sustainability and vision of building a moderately prosperous society in all respects.Mechanisms to promote common prosperity are incomplete and inadequate.The disequilibrium of functional distribution is an important cause of these income inequalities.The overall wage level of ordinary workers is low.In the future,China'should give full play to the decisive role of the market in primary distribution to ensure proper return to all types of factors,and enhance redistribution to achieve common prosperity for all its people.

Preliminary Study on Effects of the Model of Community-supported Agriculture(CSA) on Urban-rural Income Gap in China

The urban-rural income gap is widening,which has become a bottleneck restricting China＇s economic and social development.It is the current outstanding problems in the harmonious development of the society.Community Supported Agriculture（CSA） is one of the most important forms of sustainable agriculture and it has received the attention in recent years.This paper first introduces the rise and development of CSA in China,and discuss the impact of CSA on urban-rural income gap in China preliminarily in order to provide ideas for improving the farmers＇ income and narrowing the income gap between urban and rural areas.

Comparative Research on Prediction Model of China's Urban-rural Residents' Income Gap

By using the data concerning China's urban-rural residents' income gap from 1978 to 2010,this paper mainly researches the application of several kinds of models in predicting China's urban-rural residents' income gap.By conducting empirical analysis,we establish ARIMA prediction model,grey prediction model and quadratic-polynomial prediction model and conduct accuracy comparison.The results show that quadratic-polynomial prediction model has excellent fitting effect.By using quadratic-polynomial prediction model,this paper conducts prediction on trend of China's urban-rural residents' income gap from 2011 to 2013,and the prediction value of income gap of urban-rural residents in China from 2011 to 2013 is 14 173.20,15 212.92 and 16 289.67 yuan respectively.Finally,on the basis of analysis,corresponding countermeasures are put forward,in order to provide scientific basis for energy planning and policy formulation:first,strengthen government's function of public service,coordinate resources,and strive to provide an equal opportunity of development for social members,so as to promote people's welfare and promote social equality;second,breach industrial monopoly and bridge income gap between employees in monopoly industry and general industry;last but not the least,support,encourage and call for government to establish social relief fund,adjust residents' income distribution from the non-governmental perspective,and endeavor to promote the income level of low-income class.

Granger Causality Test of Urban-rural Income Gap and Employment of Rural Labor Forces——A Case Study of Shouguang City

Taking Shouguang City in Shandong Province as an example, this article researches the mutual relationship between urban-rural income and employment of rural labor forces, and conducting cointegration test and Granger causality test on the variable sequences using statistical data. The results show that the average annual income of rural labor forces influences the income per capita of rural residents, and there is a Granger causality relationship between the income per capita of rural residents and urban employees' average wage. Engaging in production concerning agriculture, forestry, animal husbandry and fishery makes the total income per capita in rural areas of Shouguang City higher than the average wage of urban residents in Shouguang City, even in Weifang City. The comparative advantage in terms of income causes the city to loose attraction to rural residents in Shouguang City. The comparative advantage drives more rural labor forces in Shouguang City to engage in primary industry, thereby greatly reducing the pressure of employment and transfer of rural labor forces. Finally important following measures are put forward to promote employment and on-the-spot transfer of rural labor forces: vigorously propel agricultural industrialization; increase rural residents' income; improve the living conditions for rural residents.

Research on the Impact of Rural Labour Forces Transfer on the Urban-rural Income Based on Economics of Discrimination

On the basis of the analytical frame of discrimination, the thesis establishes a model of transfer of rural labour forces into city, and researches the impact of rural labour forces transfer on urban-rural income. The results show that the transfer of rural labour forces into city can increase urban-rural income and bridge the income gap between city and village to a certain extent. However, the capital stock of city in China is greatly more than that of the village, so the rural labour forces transfer cannot eliminate the urban-rural income gap completely. In order to elevate the rural income level in China and narrow urban-rural income gap, the government should paint a picture with two brushes at the same time: on one hand, the government should promote the transfer of rural labour forces into city, and change the status quo of dual urban-rural labour forces market structure; on the other hand, the government should increase the input in rural areas and promote the increase of rural capital stock so as to further increase rural residents' income in the process of labour forces transfer.

On Income Distribution Mechanism of Farmer Cooperatives in the Context of Membership Heterogeneity

With reference to several possible solutions to the issue of two subject allocation,using the Accumulation Point analysis method in Game Theory,this paper analyzed the income distribution mechanism between large farmers and small farmers in farmer cooperatives in the context of membership heterogeneity. It found that,in the practice of the income distribution in farmer cooperatives,there possibly exists equalization solution,pure utility solution,Nash solution and Kalai-Smorodinsky solution and it will be affected by social conventions. Finally,it made an empirical analysis using five cases of farmer cooperatives.

Establishment and optimization of project investment risk income models on the basis of probability χ distribution

In this paper, two kinds of models are presented and optimized for project investment risk income on the basis of probability χ distribution. One kind of model being proved has only a maximal value and another kind being proved has no extreme values.

Modelling of Wage and Income Distributions Using the Method of L-Moments

Commonly used statistical procedure to describe the observed statistical sets is to use their conventional moments or cumulants. When choosing an appropriate parametric distribution for the data set is typically that parameters of a parametric distribution are estimated using the moment method of creating a system of equations in which the sample conventional moments lay in the equality of the corresponding moments of the theoretical distribution. However, the moment method of parameter estimation is not always convenient, especially for small samples. An alternative approach is based on the use of other characteristics, which the author calls L-moments. L-moments are analogous to conventional moments, but they are based on linear combinations of order statistics, i.e., L-statistics. Using L-moments is theoretically preferable to the conventional moments and consists in the fact that L-moments characterize a wider range of distribution. When estimating from sample L-moments, L-moments are more robust to the presence of outliers in the data. Experience also shows that, compared to conventional moments, L-moments are less prone to bias of estimation. Parameter estimates obtained using L-moments are mainly in the case of small samples often even more accurate than estimates of parameters made by maximum likelihood method. Using the method of L-moments in the case of small data sets from the meteorology is primarily known in statistical literature. This paper deals with the use of L-moments in the case for large data sets of income distribution （individual data） and wage distribution （data are ordered to form of interval frequency distribution of extreme open intervals）. This paper also presents a comparison of the accuracy of the method of L-moments with an accuracy of other methods of point estimation of parameters of parametric probability distribution in the case of large data sets of individual data and data ordered to form of interval frequency distribution.

Policy Recommendations for Balancing Income Distribution

Currently,the economic growth of China is mainly driven by investment and net export.The reason behind this is the distortion of our income distribution mechanism.The expansion of income gap and the uncertainty of expectation lead to a high savings rate,while the high savings rate should be balanced by investment and high export.As a matter of fact,the situation of high profit and tow wage in first the distribution induce the fast growth of investment and export.This will definitely bring excess capacity,an adverse selection of industries and affect the sustainable development of economy.To support the above argument,quantitative analysis is made with macro-economy indices.and suggestions to improve economy are provided.

The Empirical Analysis of the Impacts of Income Distribution Gap on Consumption Demand:Based on the Statistic Data of Chinese Urban Residents in 2000-2010

This paper analyzes the impact of income distribution gap on consumption demand from a theoretical view,and draws the conclusion that there is an inverse relationship between income distribution gap and consumption demand.Then,the paper finds that the existing widening income distribution gap in China has a negative impact on consumption demand,but this is not the key factor for the insufficient consumption demand because of the low level of per capital income.At last,it suggests that governments should improve the income level of entire residents and adjust income distribution structure simultaneously.

Empirical analysis of influence on economic growth of China by income distribution difference

Based on a theoretic hypothesis that income inequality has both positive and negative effect on economic growth, this paper analyzes the influence of income distribution differences on economic growth of China by establishing a multivariate linear regression model. The influence of income distribution difference on the economic growth of China changes with the change of time. During a short period immediately after China implemented reform and opening up policy, income inequality has a positive influence on the economic growth of China. However, along with the passing of time, such positive influence has become weaker and weaker and even convertes into negative effective. This paper proposes several advices with policy to restrain the difference of income distribution from expanding and weaken its negative effect on economic growth of China.

China＇s Current income Distribution Status and Countermeasures Analysis

From two perspectives, - the proportion of residential income and the equality of residential income distribution - this paper identifies a widening gap in China＇s income distribution and considers that this is a result of different factors such as technological progress, increasing return on assets, the economic growth priority strategy of local governments, the increasing number of migrant workers who are in a weak position to negotiate wages, as well as the rapid process of industrialization. Based on the above analysis, this paper presents policy recommendations on how to improve the income distribution system.

Capitalization of Productive Factors and Income Distribution Problems - Unraveling the Cruxof China＇s Income

When observing China＇s income distribution problems .from an international perspective, we find that China＇s income inequality is not much different from developed countries after primary distribution. The real difference between China and developed countries is that income inequality in developed countries will reduce greatly after income redistribution while the income inequality remains the same for China. Therefore, one can conclude that income inequality in China derives from the ineffectiveness of redistribution. However, a large income gap is not the main reason for skewed income distribution in China. In fact, the problem lies in unfair distribution resulting from factor capitalization. A handful of people have taken proceeds from public assets at the expense of all the people, which has led to social poIarization. To remove unfair distribution, China should improve its means of redistribution to narrow its income gap in order to develop a fair and reasonable pattern of income distribution.

A Theoretical Explanation of the Causes of Popular Elements and Income Power Law Distribution Based on Data Analysis

The known statistical data show that the distribution of popular elements and people’s income presents the characteristics of power law distribution.At present,the explanation for this phenomenon is mostly through the“rich get richer”theory,but the author believes that this theory has major flaws and fails to provide a reasonable explanation for many phenomena.Therefore,the author expands some empirical and recognized theories in a similar direction in logic,and derives a logical mathematical model through the derivation of mathematical formulas,so as to explain the phenomenon that the distribution of popular elements and people’s income presents a power-law distribution.Then,by analyzing various characteristics of social networks and comparing them with some phenomena in nature,the conclusion can be extended to all self-organizing groups in nature.

Influence of RMB exchange rate fluctuation on urban-rural income from the perspective of transmission asymmetry

Based on time series data of RMB exchange rate and urban-rural income, this paper makes an empirical study for the influence of RMB exchange rate fluctuation on urban-rural income by utilizing rolling regression model through direct and indirect transmission mechanisms. According to the results, the transmission effect of RMB exchange rate fluctuation on urban-rural income has features of incompleteness and asymmetry. Moreover, RMB appreciation will help to reduce the urban-rural income gap. Therefore, this paper suggests that the Chinese economy should accelerate the course of transforming mode, adjusting structure and promoting development under the new normal. Meanwhile, reform of RMB exchange rate mechanism should be promoted, living standard of residents must be improved, and the urban-rural income gap should be reduced.

Distribution of Land Increment Income from Marketing Rural Collective Land for Development Purposes : A Case Study of Changyuan City

In order to protect the property rights and interests of farmers,promote the revitalization and development of rural areas,and provide a reference basis for the reform of marketing rural collective land for development purposes,this study explores the reasonable distribution proportion of land increment income from marketing rural collective land for development purposes through analytic hierarchy process and Delphi expert scoring method.The results show that there is a positive correlation between land increment income and land grade,that is,the higher the land grade,the higher the increment income,the larger the proportion of increment income to the transaction price.According to the calculation,when marketing rural collective land for development purposes,the reasonable distribution proportion of the land increment income of the government and the village collective is 28.6%and 71.4%,respectively,and the land increment income actually obtained by farmers has been greatly improved compared with the current situation.In practice,this distribution model has universal applicability and long-term mechanism.The reform of marketing also needs to improve the standard of marketing,explore diversified channels to protect interests,and strengthen the construction of rural collective management system.In short,the distribution of land increment income from marketing rural collective land for development purposes should proceed from the perspective of land property rights and the factors affecting the price of collective land for development purposes,in order to build a reasonable income distribution model.