What Are the Different Types of Interactive Brokerage?

The urban-rural economic interaction model refers to the process of economic and social development by actively promoting the circulation of various elements such as human, market, information, industry, and culture in urban and rural areas, forming a comprehensive range of communications, connections, exchanges, and mutual promotion between urban and rural Mechanism, based on the comprehensive improvement of urban and rural purchasing power, and gradually realize the dynamic balance of the development of the two. The urban and rural economy is the two poles of the market economy system. It is meaningful to explore the mutual development of urban and rural economies in developing countries, which will not only help improve the quality of economic operations, but also speed up the pace of urbanization and effectively play a positive role in the market mechanism.

Urban-rural economic interaction model

Urban-rural economic interaction model

Let's start with the core of the market for analysis:

Market capacity = total population × purchasing power per capita

Since the actual market capacity is more manifested as the product of the per capita income level and the total population, for the current status of urban-rural differences in China, if the market capacity is divided into urban and rural areas, then:

Market capacity = level of per capita income of urban residents × urban population + level of per capita income of rural residents × rural population

From the national data from 1952 to 1998, the per capita income level of urban and rural residents is not shrinking, but on the contrary shows a growing trend. At present, the per capita income level of rural residents only accounts for about 40% of the per capita income level of urban residents. This reflects from one side. Although the current overall economic operation is in a good state, the problem of widening urban-rural differences has become increasingly prominent. Looking at the level of per capita income across the country:

Per capita income level = per capita income level of urban residents × urbanization rate + per capita income level of rural residents × (1-urbanization rate) According to analysis of many years of data, in recent years, the per capita income of rural residents has basically been 40% of the per capita income of urban residents % Level, after conversion: national per capita income level = per capita income level of urban residents × (2/5 + urbanization rate × 3/5) Assuming that the urbanization rate reaches 40%, then the per capita income level is only equivalent to the per capita urban residents The income level is 64%, and when the urbanization rate reaches 70%, the per capita income level is equivalent to 82% of urban residents. Therefore, around the core of the market, we can see that urbanization is an effective way to achieve overall social and economic progress.

The urban-rural economic interaction model focuses on the market

In fact, the interactive development model of urban-rural economy that takes the market as the core and industrialization and rural modernization as the driving force in the real society and economy mainly reflects the changes in the flow of people, logistics, and capital between urban and rural areas, among which the problem of flow of people Above all, it is the key to a series of issues. The fundamental reason for the movement of people is the huge urban-rural difference, and the difference that best reflects this is the per capita income difference between urban and rural residents. With the continuous progress of the social economy, the continuous improvement of the market economy, the flow of economic factors will become more frequent and free, and the cost of population migration between urban and rural areas will become less and less. The cost of migration activities is assumed to be zero to facilitate the entire dynamic discussion.

First of all, it is assumed that the total population and structure of the urban and rural economy will not change. With the acceleration of urbanization, the population base of rural areas participating in the distribution of economic income will also decrease. Assuming that the urbanization rate increases from 40% to 70% in 50 years, the overall impact on the per capita income level of rural and urban areas will change significantly. The urbanization rate from 40% to 70% means a drastic change in the distribution pattern of urban and rural population, and the total population in rural areas has decreased by 50%. In a theoretical sense, it also means that the level of per capita income in rural areas will increase by one. Times, reaching 4/5 of the per capita income of the original urban residents. The urban population has increased by 75%, which also means that the level of per capita income will fall to the original 4/7 (<4/5), so that the per capita income level in rural areas will be higher than that in urban areas. Inverse effects of per capita income levels. Of course, this phenomenon is extremely rare in real society, because in the entire equilibrium process, there is not only a dynamic concept of population such as urbanization, but also a concept of dynamic development of the whole society and economy.

Urban-rural economic interaction model formula

Suppose that in the above 50 years, the average annual economic growth rate of cities is a, and the average annual economic growth rate of rural areas is b. Then, the economic power comparison between urban and rural areas will also change accordingly in the past 50 years. The total urban and rural economy is 3: 1, so after 50 years, it should be 3 (1 + a) 50 / (1 + b) 50. On this basis, we assume that the current urbanization rate is c, the equilibrium urbanization rate is c, and the current income difference coefficient between urban and rural is (per capita income of urban residents / per capita income of rural residents), and n is the expected number of years to achieve equilibrium Based on the principle of urban-rural equilibrium per capita income, the following model can be obtained (right side):

Urban-rural economic interaction model

The equilibrium urbanization rate is a quantitative reflection of the realization process of urban-rural economic integration. It is a basic measure of the urban-rural economic interaction model and tends to the equilibrium process. It is a very important factor for urban-rural economic interaction, but it needs to be pointed out that it is not the only measurement factor. Social and economic development must adhere to the people-oriented principle and market orientation, and the promotion of urbanization must not be greedy for more. The key lies in establishing a scientific mechanism of urbanization development.