With the improvement of urbanization, China' s regional and urban- rural gap has expanded. This phenomenon may be related to the population policy and the system for land rights, which changes individual's preference on consumption and migration. In addition, workers share in non-tradable services in less-developed regions is gradually expanded, in which the degree of productivity improvement is lower than tradable sectors, and its price is deeply cheaper. So, impact of urbanization on economic convergence is not obvious. This paper firstly d...