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Title: |
Urbanization, Urban-Rural Income Gap and Economic Growth: A Dynamic Panel Threshold Model Study |
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Source: |
International Conference on Engineering and Business Management 2012(Part 4 Urban Management and Financial Investment)
(pp 2324-2328)
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Author(s): |
Zhe Wang, School of Economics and Management, Tongji University, Shanghai, China, 200092 |
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Abstract: |
This paper attempts to apply a dynamic panel threshold model for an empirical study on the relationship between the urbanization, urban-rural income gap and economic growth in China. The results suggest that there exists an urban-rural income gap threshold effect between the urbanization and economic growth. The threshold level of urban-rural income gap measured by the Theil index above which the urbanization significantly has a negative impact on economic growth is estimated at 0.1 and the conductive effect of urbanization on economic growth is distinctive below 0.08. Improving urban-rural income gap has great significance for economic growth because of positive effect on economic growth between 0.08 and 0.1.
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