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The Chinese Urban-rural Dual Economic Structure Model and Analysis

Author

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  • XU, Xiuchuan
  • SHI, Shengping
  • HUANG, Qinghua

Abstract

Based on the characteristics of urban-rural dual economic structure in China, we build a dynamic endogenous urban-rural dual economic model closely linked to China's reality, and carry out mathematical economics analysis of optimized conditions for urban and rural sectors. The main results show that: (i) The labor growth rate of urban-rural sectors must be greater than the time discount rate, or else there would be a vicious cycle of diminishing returns in the sectors; (ii) The accumulation rate of physical capital and human capital of urban-rural sectors, and the rate of technological progress, need to be greater than the corresponding depreciation rate plus the time discount rate, otherwise there would be a vicious cycle of diminishing returns in the sectors; (iii) The low accumulation rate in the rural sector, and the occurrence of labor outflow, human capital loss and lack of investment, will expand income gap between urban and rural areas, which is a reason for solidification of urban-rural dual economic structure.

Suggested Citation

  • XU, Xiuchuan & SHI, Shengping & HUANG, Qinghua, 2014. "The Chinese Urban-rural Dual Economic Structure Model and Analysis," Asian Agricultural Research, USA-China Science and Culture Media Corporation, vol. 6(01), pages 1-6, January.
    • Handle: RePEc:ags:asagre:164327
    DOI: 10.22004/ag.econ.164327
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    Cited by:

    1. Jian Zhu & Zifang Li & Hui Wang, 2023. "Internet Development and Urban–Rural Consumption Inequality: Evidence from Chinese Cities," Sustainability, MDPI, vol. 15(12), pages 1-15, June.
    2. Yang, Chunyu & Huang, Jue & Lin, Zhibin & Zhang, Danxia & Zhu, Ying & Xu, Xinghua & Chen, Mei, 2018. "Evaluating the symbiosis status of tourist towns: The case of Guizhou Province, China," Annals of Tourism Research, Elsevier, vol. 72(C), pages 109-125.

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    Keywords

    Agribusiness;

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