Analysis of the Impact of Urban-Rural Income Gap on the Inverted U-shaped Economic Growth of Guangdong

The dual economic structure and a series of economic measures after the reform and innovation have made the income difference both Guangdong's city and rural areas widening. This has been an issue that must be paid attention to of Guangdong's economic grow. Empirical analysis shows that Guangdong's city-rural income gap has a long-term and stable inverted U-shaped impact on economic growth. So when the urban-rural income gap is at a low level, widening the income gap will help promote economic growth, but when the city-rural income difference reaches a certain level. Further widening the income gap will inhibit economic growth. It is recommended that the Guangdong Provincial Government establish a rural security system while ensuring the rational transfer of labor, and increase public financial investment in rural education.