A Study On The Ways To Improve The Operating Income Of Urban And Rural Residents In China

Residents’ income has always been a hot port during China’s economic development. The report of18th Congress of China’s Communist Party said that doubling the residents’ income is an important goal in China’s economic development. As we know, increasing residents’ income does not only rely on economic growth and increasing residents overall income level but most important is to analyze the formation of residents’ income and to find the source of income growth by analysizing the formation of income. Operational income has a strong relationship with the market in the formation of residents’ income; it has strong elastic and a direct relationship in Residents’ production and operating activities. According to this,this article discuss how to use the financial market to promote the efficiency of the resident operating activities from analysizing the perspective of business income so as to increase the residents’ operating income and to increase the overall residents’income level.In this paper, firstly, on the basis of studying existing papers of different scholars domestic and overseas on the perspective of financial development to study the relationship between finance and economic growth and the link between finance and income distribution, we analysis the structure and development status of operating income in the urban and rural households.In the analysis, we introduce a financial marketization index to rank households operating income of the31regions in the country. So we conclude that operating income of urban residents has a strong relationship with financial market, operating income of rural residents with financial market are weak. Empirical test confirmed this conclusion and arrive at a final conclusion:there is insufficient financial support for the individual economy and private economy,as well as the rural economic development. Finally, according to the results of the analysis, the paper put forward relevant recommendations of the financial support from two angles of the towns and rural areas, Which is to increase financial support for the individual and private economy and to accelerate the development of financial system in rural areas, then, to establish the financial service system, which directly benefits to the individual and private economy and rural economic development.