| After 30 years'reform and development, the financial industry and economy in Jiangsu province has made great progress. People's income has improved continuously, but the Urban-rural income gap expands ceaselessly. The Urban-rural income gap has been a hot issue in the theoretical circles. This thesis analyzes this issue from a new perspective:the regional financial development, it has the theoretical and practical significance on the improvement to regional economy and financial development, and the need of constructing the harmonious society.Firstly, the paper reviews the foreign and home research achievements. Secondly, based on Status of Jiangsu province and its three districts, we make a direct analysis of the financial threshold and non-equilibrium effects on the Urban-rural income gap. Thirdly, the paper uses VAR models to judge the effects of Jiangsu financial development to the urban-rural income gap, using Panel-date Models to analysis the differences between three districts financial development and urban-rural income gap. Based on the outcomes of empirical studies, we find that the improvement of Jiangsu financial scale and rural financial development can make financial structure better, more people enjoy the financial services particularly in rural areas, so that the development of them can lower urban-rural income gap. To the contrary, due to the financial efficiency, financial development is only enhance the efficiency of urban financial efficiency unilaterally, many peasant and rural enterprises in rural district lack financial support, so that the rural economy develops slowly. For the three districts, south Jiangsu, Central and North Jiangsu rural formal and informal financial industry have differences in the direction and intensity, especially embodied in rural economic development and the urban-rural income gap. South and Central Jiangsu financial industry is dominant in the factors of affecting the urban-rural income gap. Finally, combined the theoretical and empirical analysis, the paper promotes some corresponding policy recommendations to narrow the urban-rural income gap. These include the following aspects:multi-level financial system, financial efficiency, and rural finance, financial and monetary policy. |
