The Research Of Urban-Rural Residents’ Income Gap In Jiangxi Province

Jiangxi,a Central China’s underdeveloped agricultural province,has been a rapid development in economic terms since the reform and opening up.And the level of urban-rural residents’ income has also been greatly improved.However,the income growth rate in rural areas is lower than urban areas,and it leads to the gradual expansion of the income gap between urban-rural residents.It not only restricts the sustained and stable development of Jiangxi Economy,but also affects social justice, even harmony and stability.How to narrow the urban-rural income gap has become an urgent problem in Jiangxi Province.Factors affecting the income gap are numerous and complex,finance is undoubtedly one of the most important factors.Finance,the core of modern economy,plays a key role in economic growth in a country or an area and residents’ income growth.For a long time,Jiangxi Province adopts a strategy of priority to the development of urban finance,and rural finance development lags far behind the urban financial development. There is a big difference between urban and rural financial development which becomes one of the main reasons of urban-rural income gap is widening.Therefore,this paper takes Jiangxi Province as the research object, study urban-rural residents’ income gap based on the perspective of urban-rural finance development difference,so as to provide some reference to narrow urban-rural residents’ income gap in jiangxi province.The main contents of the full text is divided into six parts:The first chapter,introduction.This section mainly describes the background and significance of this paper,the status quo of domestic and foreign research,the main content,research method,innovation and deficiency.The second chapter,relevant theories and analysis of the influence mechanism.This section focuses on the financial theories and the theories of income gap between urban and rural areas.Then it elaborates the influence of urban-rural finance development difference on urban-rural income gap in detail.The main purpose of this chapter is to lay the theoretical foundation for the rest of this article’s writing.The third chapter,analysis of the current situation.Firstly,this chapter analyses the status quo of urban-rural finance development difference,and it describes the status quo from two sides,the one is financial scale,the other is financial efficiency. Then this paper gets a deep analysis of urban-rural finance development difference and finds that it’s mainly from institutional and non-institutional reason. Finally,combing the 1979-2013 urban and rural incomes relevant data in Jiangxi Province,we can find that income growth of urban residents is faster than income growth of rural residents,which leads to the expansion of rural-urban income gap.The fourth chapter, The empirical analysis.This chapter is the quantitative analysis and it is the focus of this paper.In this paper,I choose 1979-2013 time series data in Jiangxi Province,and select four variables:differences in urban-rural financial development scale,differences in urban-rural financial development efficiency,the level of urbanization and the income gap between urban and rural areas.Then,I build VAR model,and analyze the relationship between variables.Through the study,I find:(1)The four variables exist a long-term stable equilibrium relationship.Difference in urban-rural financial development scale and difference in urban-rural financial development efficiency can lead to the expansion of income gap between urban and rural areas. Improving the level of urbanization can narrow the income gap between urban and rural areas.(2)Difference in urban-rural financial development scale,difference in urban-rural financial development efficiency and the level of urbanization all lead to the income gap between urban and rural areas.(3) In changes of the income gap between urban and rural,difference in urban-rural financial development scale plays the most important roles,then is difference in urban-rural financial development efficiency,the last is the level of urbanization.The fifth chapter,conclusions and policy recommendations.Rural finance is the weakest link in urban-rural finance development,and developing rural finance is the breakthrough in narrowing the differences between urban and rural finance development.Combined the above theoretical analysis and empirical results of the foregoing,we make a few suggestions on how to develop rural finance.(1)Build a diversified and functioning system of rural financial institution.(2)Establish flexible management mechanism of rural financial loan.(3)Construct perfect rural financial market competition mechanism.(4)Establish an effective rural financial risk prevention mechanism.(5)Strengthen rural financial policy support and supervision.