An Empirical Study About Rural Financial Development In Hebei Province Impact On The City’s Urban-rural Income Gap

Following the rise of the Yangtze River Delta and Pearl River Delta, the country began to make the Beijing-Tianjin-Hebei region as a new strategic goal, and make efforts to establish the third growth pole of economic development, Beijing, as the heart of the country, its economy has been in the lead of the column, at the same time Tianjin area is also working to create an economic center in the north in recent years. Hebei as the hinterland of Beijing and Tianjin, its economic importance is self-evident. However, because of the financial repression, unbalanced economic development between urban and rural rise in Hebei, and the income gap between urban and rural areas become larger. So this phenomenon reflects the fair social distribution, and it is a serious problem. Therefore, research on the influence of rural financial development to the income gap between urban and rural areas of Hebei Province, not only narrow the income gap between urban and rural areas, but also provide support for the theory of financial reform, at the same time it can enrich the Chinese rural financial development theory.Firstly, the literature review the domestic and international about the effect of rural financial development to the income gap between urban and rural literature, and paper the effect mechanism of rural financial development to the income gap between urban and rural areas in the theoretical level to determine the theoretical propositions of this article. Then, from a practical level, the article analyzed the deficiencies of underdevelopment of rural finance and the lager income gap between urban and rural in Hebei province, so we can obtain that inadequate rural financial development in Hebei Province is one of the important causes of urban-rural income gap. Then, the article’ through the use of VAR models to research the effect of rural financial development to rural-urban incomes in Hebei province and draw that in the current stage of development, expanding the scale of Hebei province rural financial development conducive to narrowing the income gap between urban and rural areas, while efficiency rural financial development make little effect of narrowing the income gap between urban and rural. Finally, based on comparative analysis and empirical research we can know that in the current we should focus on the development of rural financial scale, after the scale develop to a certain stage,we can shift the focus to the countryside on financial efficiency. Then the author from the views of the policy environment, the credit system, the system of laws and regulations and the construction of rural financial markets to put forward some suggestions...