Abstract: The rural revitalization strategy is an inevitable choice for realizing common prosperity of all people, and it is a powerful starting point to effectively solve the problems of "agriculture, rural areas and farmers" in the future.This paper constructs the PVAR model according to the national provincial panel data of 2000—2017 based on the whole country, and eastern, central and western areas respectively, aiming to explore the dynamic relationships between agricultural land circulation, urbanization and urban-rural income gap, accelerate the process of rural revitalization, earnestly increase the income of farmers, and achieve balanced development between urban and rural areas. Through the estimation of the model, the impulse response analysis and the variance decomposition, it finds that a positive relationship exists between agricultural land circulation and urbanization in eastern areas and the whole country, and it can narrow the income gap between urban and rural areas. The narrowing of the income gap between urban and rural areas can also promote the transfer of agricultural land, but it is not conducive to the development of urbanization. In central areas, the circulation of agricultural land is able to promote the development of urbanization in the long run, but it is not conducive to the narrowing of urban-rural income gap. The development of urbanization has little effect on agricultural land circulation, but can significantly inhibit the expansion of urban-rural income gap. The widening gap only slightly promotes the flow of agricultural land in the long run, but significantly promotes the development of urbanization.In western areas, the impact of agricultural land transfer on urbanization and urban-rural income gap is not significant, nor is the impact of urbanization on farmland circulation.But in the long run, urbanization is conducive to the narrowing of urban-rural income gap.The impact of the gap on farmland circulation and urbanization is not great. On this basis, this paper puts forward some targeted and easy to operate policy recommendations to achieve the benign interaction between the three, accelerate rural revitalization, increase rural incomes, narrow the income gap between urban and rural areas, and achieve balanced development between urban and rural areas, and enhance further the quality of China's economic development.