Analysis Of The Influence Of Rural Financial Development On The Income Gap Between Urban And Rural Areas In China

Since the reform and opening up,China's economy has experienced a qualitative leap and has now become the world's second largest economy.The economic growth is correspondingly higher in the gross national product,the people's income level is growing,breaking through to new heights,and the overall economy is improving.In2016,the top 10% of European incomes accounted for 37% of the country's total income,which was 41% in China and 47% in North America.In the past few decades,the income gap has almost always been expanding in all countries of the world.The expansion of the income gap will not only endanger social harmony and stability,but also hinder the pace of building a well-off society in an all-round way.As the core driving force of rural economic development,rural finance affects the distribution of rural residents' income to a certain extent,determines the level and direction of rural economic development,and affects the overall development of the national economy.It is also based on the fact that the rural financial market is basically perfect,forming a complex rural formal financial supply system that coexists with cooperative,commercial,policy and new rural financial institutions.Inclusive financial organizations and institutions are also better placed in rural areas.Farmers can enjoy the dividends brought by financial wealth management products other than storage,but the income gap between rural and urban areas is still large.Therefore,the study of rural financial development on urban-rural income gap Influencing,analyzing how rural finance works in rural areas and farmers,for the effective development of rural finance,rational and effective rural finance to drive the increase of farmers' income,narrow the income gap between urban and rural residents,and achieve urban-rural integration,and implement the "rural revitalization strategy" Very important meaning.Through the analysis of theoretical analysis and literature review,this paper writes according to the idea of “impact mechanism analysis-development status description-positive research-policy advice”.Through research,this paper draws the following conclusions:(1)China's rural finance accounted for a low level,the scale of rural financial development grew slowly,and the efficiency of rural financialdevelopment continued to decline;from 2000 to 2017,China's overall income gap showed a trend of decreasing gradually.(2)In the empirical research,the rural financial development level and the urban-rural income gap data meet the requirements of empirical stability.Through the cointegration test,it is found that the change of rural financial development level can cause the income gap between urban and rural residents,urban towns and rural areas.There is a long-term cointegration relationship in the income gap;(3)through the impulse response and variance decomposition,the rural financial development efficiency has the effect of narrowing the income gap between urban and rural areas,but the contribution is only 5.48%;rural finance The scale of development can expand the income gap between urban and rural areas,and the contribution is much higher at 23.95%,but the lag is more serious.The efficiency of rural financial development will narrow the income gap within the town,and the contribution will reach 3.07%.In the long run,the expansion of rural financial development will still drive the expansion of urban internal income gap,with a contribution of 33.41%.The increase of rural financial development efficiency will drive the income gap in rural areas to expand,and the contribution rate will reach54.30%.The positive impact of rural financial development scale on rural internal income gap will make the rural income income gap positively respond,indicating rural financial development.The expansion of scale will lead to the expansion of the rural income gap,but the impact is small,with a contribution of only 1.39%.(4)In summary,the impact of China's rural financial development level on urban-rural income gap is mainly divided into two types.First,the scale of rural financial development will increase the income gap between urban and rural areas and urban areas,and the impact will be relatively large.Rural finance Development efficiency can narrow the income gap but the contribution is relatively small.Second,the rural financial development efficiency has a relatively large impact on the rural internal income gap,which will lead to the expansion of the rural internal income gap.The scale of rural financial development can also drive the expansion of the rural internal income gap.The contribution is relatively small.Through analysis,the author believes that the income gap between urban and rural areas and the expansion of urban internal income gap should start from the scale of rural financial development,take effective measures to narrow the gap;the expansion of rural income gap should be based on the efficiency of rural financial development,Take effective measures to close the gap.In order to further developrural finance,raise the income level of residents,and improve the income gap between urban and rural areas,this paper proposes countermeasures from both rural and urban areas:(1)Rural areas: increase investment in agriculture,support and protection,and play a role in finance Subsidies and the role of rural funds themselves,effectively enhance the source of rural funds;implement a rural fund ratio return system,the new deposits in rural savings belong to the rural part of the funds,and return to local rural formal financial institutions in a certain proportion by a certain method,Ensuring that rural funds come from rural areas for rural construction;encourage commercial banks and other non-bank financial institutions to support agriculture and reduce the outflow of rural deposits.(2)Urban aspects: standardize the financial market system,appropriately reduce the layout of rural financial institutions in cities and towns;accelerate the transformation of urban dual economic structure,rationally allocate financial resources,reduce the imbalance of resource development;accelerate the construction of financial credit reporting system,Supervision regulates the development of informal finance.