Statistical Study Of The Impact Of Financial Development In Chongqing Urban-rural Income Gap

As the only municipality in western region, Chongqing has a very important strategic significance to lead the western region's economy and social development. But we also see, the upper Yangtze river economic center and the western important economic growth pole is Chongqing, and Set " big cities, big rural, large reservoir, big mountainous area and national areas " in one is also Chongqing. The urban-rural dual structure contradiction is very prominent. According to the Chongqing statistics yearbook (1980 ~ 2009), its urban-rural income ratio from 2.36 in 1979, rose to 3.81 in 2008. Since the reform(1979), the income gap rose by 145 percent. Particularly worse, the relative income gap in Chongqing is bigger than nationwide about 50 points. Obviously, the income gap in Chongqing is the major obstacle on the road of the urban-rural development, and its not only typicalness but also representativeness. So, it will be a role model of the urban-rural synthetically reform testing district in our country.Economic development is due to financial contribution. Because of the differences of efficiency between urban and rural, capital begins to flow. The efficiency of capital is an important indicator to measure the result of financial resources. If the efficiency improve, it means too much capital will flow from the low ratio to the high. From the angle of capital efficiency to study the effect of financial development to the income gap, on one side, it may explain the capital leaving the village area to the city, on the other side, it may find the road of the effect of financial development to income gape, and initiate the thinking of countermeasure research. This article is divided into six chapters.Chapter 1 is an introduction. In this part, the auther through raising a question to cut-over topic, and explains the topic selection basis. After given three basic concepts, the paper lists research methods, data sources and the main research contents. Finally, it tells us the innovation and deficiencies in this paper.In Chapter 2, it includes theoretical basis and literature review of financial development and income gap. At first, the paper summarizes the theory of financial development and the theory of income gap. Then, it do up the relationship of financial development and income gap. There are all the foundationm of the next research.Chapter 3 is the study of the income gap in Chongqing. In this part, the paper uses the lateral comparison and the longitudinal comparison, and studys the influencing factor of income gap in Chongqing. The longitudinal comparison includes the urban-rural income ratio, the income gap of Chongqing by its economic zone, the income gap of different income level in their families (including rural internal, city internal and urban-rural). The lateral comparison consists of the compare of Chongqing and nationwide, the compare of Jing, Jin, Hu, Yu and Chuan. In the empirical analysis part uses the principal component analysis and OLS.Chapter 4, it bases on the angle of the capital efficiency to analyse the influence of the financial development to the income gap in Chongqing. At first, the paper uses the achievement of researchings to estimate the capital of three industries of Chongqing, then bases on the definition of capital-output rate to obtain the capital efficiency of three industries, to declare the fact of capital flow. The empirical analysis in this part uses cointegration theory, vector error correction model and impulse response function, and systematicly analyses the relationship of capital efficiency, financial development and income gap.Based on chapter 4, chapter 5 uses the comparative analysis to analyse the rural finance development and its economic development between Chongqing and nationwide. From the entirety, the rural finance development is an important factor of its economic development both Chongqing and nationwide, however, from the relationship of variables, they reflect different degrees of relevance, so, it important to emphasize the rural finance development.Chapter 6 is about conclusion, policy and recommendation, and the further research prospect. This part summarys the conclusions of the paper, and proposes some advice on account of finance development to help narrow the income gap in Chongqing.