The Influence Of Policy-based Finance On The Income Gap Of Urban And Rural Residents In Western China

The emergence of policy-based finance is a kind of integration of financial resources,which can solve the problem of long-term public financing difficulties in rural areas through cross-term profit.In addition,policy-based finance can play an important role in the infrastructure construction in rural areas,which is of great significance to narrowing the income gap between urban and rural residents.As an economically underdeveloped region in China,the western region is an important area for the promotion of policy-based finance.Can the implementation of policy-based finance help to narrow the income gap between urban and rural residents? If so,how can we reduce the policy-based income of urban and rural residents? How does different regional policy-based finance perform to narrow the income gap between urban and rural residents?Exploring and answering the above questions plays an important role in helping the western region to use policy-based finance to reduce the income gap between urban and rural residents,which is also the significance of this paper.Based on the binary economic structure theory,income distribution theory,income gap theory,etc.,using literature analysis,qualitative analysis and quantitative analysis,based on the data from 2010-2020,the empirical analysis of western policy finance on urban and rural residents income gap,first to the western region of policy financial development level and urban and rural residents income gap,to explore the difference of each region.Secondly,according to the results of the measure,the influence of policy finance on the income gap between urban and rural residents in the western region is effectively analyzed,and finally,the spatial distribution of the impact of policy finance on the urban and rural income gap in the western region is studied.Based on the above studies,the following conclusions are mainly obtained:First,the coefficient of variation method and Gini coefficient method are used to measure the development level of policy-based finance and the income gap between urban and rural residents in each western region.The results show that the average value of the overall PFI index in the western region is in the range of 0.3-0.37,which indicates that the overall policy finance in the western region is at a medium level of development,and the level of development is constantly improving.Chongqing,Shaanxi,Guizhou and Guangxi are all in the advanced level of policy-based finance,among which Chongqing has the highest PFI index and the policy-based finance is in the advanced level of development,followed by Shaanxi Province.The development trend of policy-based finance in Guizhou Province and Guangxi Autonomous region is highly similar.Sichuan,Yunnan,Gansu and Ningxia are all at a medium level of development,while Qinghai,Tibet,Xinjiang and Inner Mongolia are all at a low level of development.Second,the Gini coefficient method is used to calculate the Gini coefficient of the income gap between urban and rural residents in the whole western region and 12 sample regions.The research shows that the overall measured value in the western region is within the range of 0.2-0.3,and the overall urban and rural residents’ income in the western region is in a relatively balanced state.Among them,the Gini coefficient of Ningxia,Chongqing and Inner Mongolia is below 0.2,reaching the state of income equality between urban and rural residents,and Ningxia is at the lowest level.The Gini coefficients of the five sample regions of Sichuan,Shaanxi,Qinghai,Tibet and Xinjiang vary within the range of 0.2-0.3,indicating that the income of urban and rural residents is in a relatively balanced state.Sichuan,Shaanxi and Qinghai regions are expected to enter the level of income equality between urban and rural residents in the next three years.From the results of income source decomposition,the main source of the income gap between urban and rural residents in western China is the wage income gap between urban residents and rural residents.Wage,property and transfer income gap will lead to the western areas of urban and rural residents income gap intensified.Compared with urban residents,rural residents have higher operational income,which will make up for the shortage of wage,property and transfer income sources of rural residents,and thus alleviate the income gap between urban and rural residents in western China.Thirdly,the empirical study of the influence of policy-based financial development level on the income gap between urban and rural residents in western China by using the intermediary model shows that:under the results of the full sample regression,the benchmark regression results show that there is a significant negative correlation between the policy-based financial development level in western China and the Gini coefficient of urban and rural residents’ income.In the full-sample regression model that takes the social economy of western China as the intermediary variable,the influence of policy-based financial development level on the Gini coefficient of urban and rural residents’ income in western China is still significantly negative.The results show that 3.35% of the effect of policy-based financial development on reducing the income gap between urban and rural residents in western China comes from the indirect effect of social economy.Fourth,grouping regression results show that the policy finance development level of higher economic region in the regression results are consistent with the sample,the significant negative correlation,and the high level of regional economic and social economy in the policy finance and the relationship between urban and rural residents income gap exists in the significant negative effect of mediation,policy finance development level of ascension can be directly lead to the urban and rural residents income gap narrowed,Policy-based finance in high economic areas can indirectly narrow the income gap between urban and rural residents by promoting social economy.There is a significant positive relationship between the development level of policy-based finance and the Gini coefficient of the income gap between urban and rural residents in the middle economic region of western China,and the social and economic level has a positive mediating effect on the relationship between policy-based finance and the income gap between urban and rural residents.However,the development level of policy-based finance in the lower economic regions in western China has not passed the significance test in the three models.There is no significant correlation between policy-based finance and urban and rural residents’ income,and the mediating effect of social economy between them also does not exist.Fifth,by analyzing the spatial autocorrelation and local correlation between policy-based finance and the income gap between urban and rural residents in western China,this paper explores the spatial correlation between policy-based finance and the income gap between urban and rural residents in western China.The results show that: There is an internal positive spatial correlation between policy-based finance and the income gap between urban and rural residents,and the degree of correlation is constantly increasing,and the level of policy-based finance in western China has improved significantly in the past three years.Among them,Chongqing,Sichuan,Shaanxi,Yunnan,Guizhou,Ningxia and Guangxi will rise to the first quadrant in 2020,and all of them are concentrated in areas with high observed values.Inner Mongolia,Tibet,Xinjiang,Qinghai and Gansu hover in the second,third and fourth quadrants,and the level of policy-based financial development needs to be improved.According to the regression results of spatial lag model,the policy-based financial development in Inner Mongolia,Tibet,Xinjiang,Qinghai and Gansu has a strong lag to narrow the urban-rural income gap.This paper may be innovative in three aspects.First,in terms of index selection,this paper focuses on the availability and use of financial services and selects eight indicators for measurement.In order to improve the accuracy of measurement,the coefficient of variation method is used to calculate the weight of each index,which is innovative.Second,in the division of the effect of policy-based finance on the income gap between urban and rural residents,the direct effect is divided into three aspects: disequilibrium effect,threshold effect and poverty reduction effect,and the selection Angle is innovative to some extent.Third,the use of weighting matrix,to the space in the clear observation object,on the basis of the actual space distance,using the theory of spatial econometric test since the correlation of observation objects,from the western region observations object geographic neighboring relations,exclusive geographical position,the observation object space interaction relations three angles to the analysis of the global and local,The application of spatial weight matrix can solve this problem well and is innovative.