There is a close relationship between urbanization and the living standard of rural residents. By using the time series data of Chinese urbanization and rural residents lasting income from 1978 to 2015, this paper finds that the in- crease of the urbanization is the Granger cause for the rural lasting income, but rural residents permanent income is not the Granger cause for the urbanization. There is a long-term equilibrium relationship between Chinese urbanization and rural lasting income.From a long-term point of view, if urbanization rate increases by 1 percentage point, rural residents per...