A Study On The Impact Of Financial Agglomer Ation On Urban-rural Income Gap

Whether and how the financial resources’ spatial agglomeration and inhomogeneous distribution affect urban-rural income gap.The current theory and empirical research has not given full answer about it,nor each an agreement.For this purpose,this research is to study the effect mechanism of urban-rural income gap based on the perspective of financial agglomeration,trying to add a new theory explanation about the reason of our country’s urban-rural income gap.Moreover,on the basis of the mechanism analysis of financial agglomeration affect urban-rural income gap,to improve the efficiency of urban-rural financial resource allocation by improving our country’s system environment of financial resources allocation,this has profound practical significance towards realizing common prosperity and narrow the urban-rural income gap.This study’s logical approach and structure are as followings: firstly,briefly introduce the financial aggregation,urban-rural income gap’s meaning and measurement methods,and then review the related basic theory of financial aggregation and urban-rural income gap;then,apply the Location Quotient to analysis the characteristics of the present aggregation situation of our country’s banking industry,securities industry and insurance industry;followed by sorting out the direct and indirect transmission mechanism of financial aggregation influencing the urban-rural income gap,establish the two-sector economic growth model to analysis the influence mechanism of financial aggregation towards urban-rural income gap,and examine direct and indirect effect of financial agglomeration towards urban-rural income gap and its spatial heterogeneity;finally,come out conclusion and provide related policy suggestions.The main conclusion of this study,firstly,our country’s banking industry,securities industry and insurance industry mainly concentrated in the eastern region,the midland,western and northeast region has low level of concentration,and different type of financial agglomeration shows differentiation trend in different regions.Secondly,generally,our country’s urban-rural income gap has gone through a reverse “U” shape change trend,the western region has biggest average gap,eastern region is lower,and western region,midland and Northeast’s urban-rural gap is getting smaller.Thirdly,nationwide,the banking industry and insurance industry has reduced the urban-rural income gap dramatically,and the marginal benefit will descend when regional economic development level increases;in the eastern region,the aggregation of baking,securities and insurance industry has increase the gap of urban-rural income,this effects will decrease when region economic development level increases;in the western region,banking and securities industry has increasethe urban-rural income gap dramatically,but insurance industry has narrow the urban-rural income gap,and the marginal benefits will descend when region economic development level increases.