Income Gap of Residents, Peasant Income and Economic Growth: An Empirical Study of Rural China Data

Using data of rural China in 1978 and 2008, the author built two independent models: Gini coefficient model and rural residents´ income model, and put forward a principle that the economic development of a country tends to choose measures or policy variable which can both narrow income distribution gap and increase rural residents´ income. Through model analysis and further contrastive studies, we found that promoting urbanization process, facilitating labor force flow from contryside to city, increasing income from properties of rural residents are the double excellence variables which can both increase economic efficiency and maintain scoial equity. In addition, there are other important policy and measures to adjust rural residents´ income gap: Promote development of non-agriculture industries, increase inconme from wages and Salaries for rural residents, intensify central financing´s efforts to support agriculture and pay attention to regional balance and social equity, increase grain prodution, protect grain price and farmers´ grain income, instensify efforts of supporting rural education, realize educational equity. Meanwhile our research results also indicated that increasing farmers´ income, realize equal incresing of most farmers´ wealth, promote rapid growth of rural economy are the material basis of adjusting rural residents´ income gap.