XU Zhenyu,etc:Influence of Residents' Fundamental Rights Inequality on Urban-rural Gap——Empirical Evidence From Chinese Provincial Panel Data

Abstract：In this paper, based on Chinese provincial panel data from 1996 to 2008, we used the differential GMM model to conduct an empirical study on the relationship between residents' fundamental rights inequality and urban-rural consumption gap in order to explore approaches to narrow such gap.The results showed that: the inequality on basic rights between urban and rural residents played a notable role in explaining China's urban-rural gap.Supportive and beneficial agriculture policies which increased the proportion of agricultural expenditure and increased rural education expenditures and rural investment in fixed assets, as well as the abolition of agricultural taxes, could narrow the urban-rural gap too.However, the relationship between the level of industrialization and urban-rural gap was significantly negative, and market-oriented reforms showed either a significant positive correlation with urban-rural gap, or no significant correlation between them.Above findings provided empirical evidences for narrowing urban-rural gap by entitling equal fundamental rights to both urban and rural residents.

Key words： Residents' Fundamental Rights    Level of Consumption    Urban-rural Gap    Differential GMM

source:Finance & Trade Economics ,No.1,2015