A Regional Analysis on Chinese Urban-Rurual Residents’ Income Disparity - Based on DEA and Multi-Regression Methods

Abstract

Regional income disparity is a hot contention in developed countries.Income level of Chinese rural residents has been increasing since the mid of 1990’,although income disparity is increasing also.As to find the ruels behind it,we select 27 provinces units as sample and give urban residents income(Y1),rural residents income(Y2) as output variables,while average GDP(P),average education input(E) and average fixed assetes(K) as input variables.Under the presume,we select the output variables inclination and alterate scale revenue,by which to carry on analysis of input-output efficiency with DEA and give the order according to each province’s efficiency.At the same time,we could get two multi-regression model of Chinese urban and rural residents’ disposal income seperately,with which we will find the difference by comparating them.Finally,under the analysis with DEA and multi-regression methods,can we find the disparity between different provinces is the main factor to the total disparity,while each province’s disparity his its own speciality.Harmonious development between different regions could be the preferable orientation of China.