关键词: 省直管县, 财政分权, 城乡收入差距

Abstract: This paper takes the perspective of fiscal decentralization among subprovincial governments to examine the effect of Provincemanagingcounty（PMC） reform on the income gap between urban and rural areas Theoretically，PMC reform has increased local taxsharing rate and intergovernmental transfers，which force local governments to face more intense horizontal competition，extending a “grabbing hand” to the rural areas，and choose a development strategy that favors capitalintensive industries Those two logical approaches widen the income gap between urban and rural areas in the county Empirically，the main findings are as follows First，PMC reform has widened the income gap Second，the effects of PMC reform vary in different regions PMC reform has a positive impact on the gap between urban and rural areas in eastern and middle regions But it has an opposite impact in minority，poverty and western regions It has no impact in grainproducing counties and border counties Third，the mechanism analysis shows that two channels of PMC reform are intense horizontal competition among counties and governmental development strategy that favors capitalintensive industries

Key words: province-managing-county, fiscal decentralization, urban-rural divide