Co-Integration Analysis of the per Capita Income between Countryside and Townsfolk in China

Abstract:

According to the annual data of rural residents’ per capita net income and urban per capita disposable income throughout the country from 1978 to 2010, we used co-integration analysis to inspect the relation between them, and then established error correction model. The analysis result indicated that there was a secular stable balance relationship between rural residents’ per capita net income and urban per capita disposable income throughout the country, in which elastic coefficient was less than 1. The 22.87% deviation of rural resident’s income and long-term equilibrium value has been amended. We can utilize error correction model to predict the error between rural resident’s income from 2011 to 2013 and real data be within 1%. The model has superior prediction accuracy.

• Periodical: Applied Mechanics and Materials (Volumes 687-691)
• Pages: 4564-4567
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.687-691.4564
• Online since: November 2014
• Authors: Wei Jiang*
• Keywords: Co-Integration, Country, Error Correction Model, Income, Town

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