Abstract: The level of the Chinese market has exceeded the critical level,but there is still a great gap between the development of urban and rural commodity markets.The author built the index system of coordinated development of China's urban-rural commodity,calculated degree of commodity market development coordination in 1978—2007 by factor analysis and analyzed the impact factors through the instrumental variable regression.The results show that the coordination of China's urban-rural commodity market grow high in 30 years,but mainly in the protection factors and power factors,while the state factor will fluctuate several times.GDP,urbanization and industrialization have a significant positive effect,commodity rate also has a positive contribution,but urban and rural trade barriers play a non-linear effects which are  different in different stages of development.

Key words: urban and rural commodity markets, coordination degree, factor analysis, urban and rural trade barriers, urbanization