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

The year 2021 is the starting year for China to start exploring the "rich first and then the rich,and share the road to prosperity".Rural revitalization is the only way to achieve common prosperity,in which the role of finance is crucial.The No.1 Central Document has repeatedly emphasized that to vigorously promote rural financial reform and innovation,it is necessary to combine rural financial development with the income gap between urban and rural areas.From the beginning of liberation to the present,my country’s rural financial development has gone through five stages.With the development of rural finance,what is the changing trend of the urban-rural income gap?Clarifying the relationship between the two can adjust the rural financial development strategy in a targeted manner,thereby narrowing the urban-rural income gap,which is of great significance to promoting common prosperity.Therefore,this paper will conduct research on the impact of China’s rural financial development on the urban-rural income gap.In the process of empirical analysis,firstly,the fixed effect model is used to analyze and draw the conclusion:From the overall situation of the whole country,rural financial development has narrowed the urban-rural income gap and there are differences in different regions:the rural financial development efficiency index and the urban-rural income gap in the northeast and eastern regions A negative correlation is found,that is,rural financial development reduces the urban-rural income gap,and the other regions are the opposite;the rural financial development indicators in the eastern,central,and western regions are negatively correlated with the urban-rural income gap,that is,rural financial development narrows the urban-rural income gap,and the rest of the region is the opposite.In order to further confirm the relationship between rural finance and urban-rural income,a Pvar model is constructed:through impulse response and variance decomposition analysis,it can be concluded that rural financial development has narrowed the urban-rural income gap,which is consistent with the conclusion of the fixed effect model.In order to understand the dynamic changes within the region,the threshold model is used for further verification.When the individual economic growth index is used as the threshold value:the rural financial development efficiency index has no threshold value in the central and western regions,and rural financial development is negatively correlated with urban and rural income.relationship;there are one and two thresholds in the northeast and eastern regions,respectively,showing an inverted U change;the rural financial development indicators are all negatively correlated except for the northeast and the urban-rural income gap,and there are double and negative correlations in the east and west respectively.In the single threshold mode,the interior is still an inverted U change.Finally,based on the previous research results,this paper gives policy suggestions:under the guidance of the government,we should continue to vigorously develop rural finance;the government needs to take relevant measures to curb the outflow of rural financial resources;optimize the regional industrial structure and improve the use of agricultural funds efficient.