Research On The Onlinear Relationship Between Financial Development And Economic Growth

Today China's financial scale is growing, and the economy is the second largest in the world. However, the problem of China's income gap has become increasingly prominent. Is the income gap between urban and rural areas a phenomenon worthy of vigilance? Whether it will affect the financial development and economic growth? How to make the income gap between urban and rural areas to return to a reasonable level? This is the question that this article will discuss and answer.In theory, dual economic system, government policy, income distribution and so on factors that created the current urban-rural income gap of our country, the income gap between urban and rural areas expand and rupture of the rural and urban, social contradictions, low consumption of rural residents, rural children education conditions are relatively poor, talent, large capital outflows, the rural financial development is extremely limited, and further affect the urban financial and economic, is not conducive to China's financial and economic balanced development. Empirically. In this thesis, the provincial panel data of China's 29 provinces and cities from1990 to years, the gap of income distribution as the threshold variable, using the panel threshold model to analyze the nonlinear relationship between financial development and economic growth in China, at the same time, using the GMM model, mixed OLS, fixed effects, random effects panel data econometric analysis method on the income gap between urban and rural areas threshold effect for re inspection. Through empirical test, the threshold value is estimated, and the threshold effect of the income gap between urban and rural areas is determined.The results of this thesis show that the financial development and economic growth have the income gap between urban and rural areas, and the positive effect of financial development on economic growth is increasing with the decrease of the income gap. In the subregional analysis, the threshold of the eastern and central regions of the value is higher than the western region, in the central region, the degree of the gap in income distribution on the relationship between financial development and economic growth, West Second, eastern region weakest. Visible income gap threshold effect in the central and western regions is particularly evident. The income gap between urban and rural areas must be paid enough attention to, the government and the society have an obligation to reduce the income gap between urban and rural areas.