The Influence Of Informal Financial Development On Urban-rural Income Gap In Western Areas

China's economic development has gotten sustainable growth,while the income level of rural inhabitants in China is persistently low,and the urban-rural income gap has always been in a high level.Due to the existence of urban-rural dual-financial structure,it is difficult for formal financial institutions to provide financial support to rural economic activities,and financial resources outflow from rural areas,which is more prominent in the economically backward western areas.The development of informal finance has greatly alleviated the situation of fund scarcity in rural areas,improved financing efficiency and promoted the development of rural economy.This is of great significance for improving rural income and relieving the constantly enlarging urban-rural income gap.Based on this,this paper mainly investigates the influence of informal financial development on urban-rural income gap in western areas.This paper makes a statistical description and problem analysis of informal financial development and urban-rural income gap in western areas,Using the panel data of 11 provinces(cities,districts)in the western region from 2003 to 2016,the panel regression model and threshold regression model are used to empirically test the impact of informal financial development on the urban-rural income gap.The results show that the level of informal financial development is urban and rural.The income gap has a significant negative effect,that is,informal financial development can slow the urban-rural income gap.The median effect analysis method is used to empirically test the ways in which the informal finance affects the urban-rural income gap in the western region.It proves that improving the urban-rural imbalance effect and reducing the poverty effect is an important way for informal financial development to narrow the urban-rural income gap.Based on the empirical results,the paper puts forward suggestions for promoting more normative development of informal finance in western areas,such as improving the institutional system of informal finance,including legal system and regulatory system,improving the credit environment of informal finance,including strengthening the establishment of credit system and building credit guarantee system,strengthening the organizational construction of informal finance and promoting the cooperation between rural informal finance and formal finance.