Impact Of Financial Development On The Consumption Gap Under The Economic Opening Perspective

Based on the improvement of economic opening,the increasing financial development strength and the widening consumption gap,the paper tries to study the Impact of Financial Development on the Consumption Gap under the Economic Opening perspective.The article first introduces the background and significance of the topic,and then summarizes the research literature of economic opening,financial development and urban-rural consumption gap,absorbing the main points and finding a new perspective.On the basis of this,the article analyzes the mechanism of financial development to the consumption gap,and points out that financial development can affect China's consumption gap by influencing the national economy,the residents' income,the residents' consumption demand and the residents' consumption structure.In order to compare with the results of empirical test,this paper analyzes the present situation of China's financial development,consumption development before the empirical test,and points out the current problems of them.The article chooses the data from 1984 to 2014,and through the calculation of Moran index,the article thinks that there are spatial effects of urban and rural consumption gap in China.Therefore,the paper chooses the spatial regression model and the spatial error model to study the spillover effect.The results of empirical test show that the financial development,the level of urban development,the government intervention can reduce the consumption gap;economic opening,income gap can expand the gap.Financial development has a negative effect on the consumption gap between the central and western regions,and has a positive effect on the eastern part.The effect of economic opening and financial development on the consumption gap is opposite,and the effect is remarkable.The article makes recommendations for the relevant departments.