Research On The Influence Of Rural Financial Development In Jiangsu Province On The Urban-rural Income Gap

In the report of the 19 th National Congress of the Communist Party of China,it was pointed out that China’s economy is currently facing the problem of "imbalance and inadequacy".In order to better address this issue,the country has made further strengthening the reform of the national socioeconomic system an important task in its annual economic work,and rural financial development is a very important work content.Due to the obvious allocation and guiding role of funds,financial development has become a key factor affecting the efficient operation and sustainable development of social economy.The high-quality development of rural economy and the sustained growth of rural residents’ income cannot be separated from the healthy development of rural finance.However,the inefficient operation of rural finance will directly affect the economic development of rural areas,leading to the ineffective or efficient use of various resources,especially financial resources.The impact of rural finance on improving rural residents’ income is not obvious.Therefore,between urban and rural areas,how to promote the improvement of rural residents’ income through rural financial policies and narrow the income gap has strong theoretical and practical significance.This article takes "the impact of rural financial development on the urban-rural income gap" as the research object,and selects Jiangsu Province,an economically developed province in the Yangtze River Delta region,as a typical sample.Based on a comprehensive analysis of the current situation of rural financial development and urban-rural income gap,it deeply analyzes the internal mechanism that rural financial development can promote the improvement of farmers’ income level and thereby narrow the urban-rural income gap.At the same time,this article selects the time series data of Jiangsu Province from 1995 to 2019,and uses the econometric vector autoregression(VAR)model to conduct an empirical study on the impact of rural financial development on the urban-rural income gap.The empirical results show that the rapid development of rural finance in Jiangsu province has eased the income gap between urban and rural residents.In order to solve the current problem of excessive urban-rural income gap in Jiangsu,based on empirical research results,this article proposes to improve the rural financial development system from five aspects,narrow the urban-rural income gap,and lay a good foundation for achieving the rural revitalization strategy in Jiangsu and provide policy recommendations.The policy recommendations for these five areas are: scientifically planning financial funds,improving rural financial supervision,strengthening rural financial security,improving the rural credit system,and vigorously promoting rural revitalization.