Research On The Impact Of Capital Allocation On Urban-Rural Coordinated Development

The report of the 20 th National Congress of the Communist Party of China pointed out that the problem of unbalanced and inadequate development is still prominent,there are many bottlenecks in promoting high-quality development,the gap between urban and rural regional development and income distribution is still large,and the main contradiction in China’s society is the contradiction between the people’s growing need for a better life and unbalanced and inadequate development.Among them,the imbalance of urban and rural development has become one of the key imbalances affecting economic development.Especially in rural areas,the irrational allocation of urban and rural resources has led to many problems,such as the lack of impetus for rural development,the low income of farmers,the low efficiency of agricultural production,and the weak public services.In the face of the current situation of urban-rural imbalance,the Party and the state have put forward a series of strategic measures such as "urban-rural coordination" and "urban-rural integration",which make it clear that the status of rural and urban areas is equally important,and focus on solving the problems of agriculture,rural areas and farmers.It is obvious that taking the road of urban-rural coordinated development will be the only way to build socialist modernization with Chinese characteristics.Urban and rural economic development needs various resource factors,of which the capital factor can promote the division of labor and the growth of wealth,which is particularly important in the process of urban and rural development.However,capital factors such as financial capital and human capital are relatively scarce in rural areas.This irrational allocation of urban and rural capital is obviously not conducive to the increase of farmers’ income and rural economic development.Therefore,the study of urban and rural capital allocation has become an important content in theory and practice,This is of profound significance for promoting regional economic growth,narrowing the income gap,and realizing the coordinated development of urban and rural areas.The so-called coordinated development of urban and rural areas is to give consideration to fairness and efficiency,not only narrow the income gap,but also promote economic growth and productivity development.The current academic research on the coordinated development of urban and rural areas is mainly based on theoretical analysis.Even the empirical research is more focused on the income gap between urban and rural areas,while it is rarely involved in improving efficiency and narrowing the gap at the same time.Focusing on the resource element of urban and rural capital,this paper comprehensively analyzes the impact of the overall level of capital and the way of capital allocation between urban and rural areas on the coordinated development of urban and rural areas from the perspective of financial capital and human capital,which are two hot spots of current academia.First of all,on the basis of combing the literature on the overall development of urban and rural capital,the unbalanced allocation of urban and rural capital and the urban-rural income gap,as well as the capital investing in the countryside,this paper puts forward the logical starting point of the paper’s research,that is,whether the urban and rural capital should focus on the overall centralized development or balanced distribution in order to facilitate the realization of the dual goals of urban and rural equity and efficiency improvement,and further expounds the relevant theoretical basis,mathematical model and mechanism of action.Secondly,based on macro data,this paper empirically tests the impact of urban-rural financial capital allocation on the coordinated development of urban and rural areas and the intermediary transmission mechanism.At the same time,human capital is further included in the analysis framework,and discusses the regulatory role of urban-rural educational,healthy and mobile human capital in the impact of financial capital on the coordinated development of urban and rural areas.This article examines whether inclusive finance and capital investing in the countryside,two ways of optimizing capital allocation,can promote coordinated urban and rural development,as well as intermediary mechanisms and regulatory effects.Finally,according to the results of theoretical and empirical tests,and in combination with the actual situation of urban and rural development in China,this paper puts forward the realization path and policy recommendations to promote the coordinated development of urban and rural areas from the perspective of urban and rural capital allocation.The main conclusions of the paper are as follows:(1)The allocation of financial capital should avoid a one-size-fits-all approach and adopt differentiated strategies based on regional development levels in terms of financial scale,financial efficiency,and financial structure to determine the balanced allocation of financial capital between urban and rural areas.In terms of financial scale,both the overall regional development and the balanced allocation between urban and rural areas should be paid attention to.In terms of financial efficiency and structure,we should promote the coordinated development of urban and rural areas by improving the overall level of regional financial efficiency and constantly narrowing the differences between urban and rural financial structure.In addition,the level of financial efficiency and the balanced allocation of urban and rural financial efficiency play an important role in promoting the coordinated development of urban and rural areas in the eastern part of China in the middle and late stages of industrialization,while in the central and western part of China in the early stages of industrialization,it is more reflected in the overall regional financial scale,differences in urban and rural financial norms,and differences in financial structure.(2)Economic growth and urbanization are not the fundamental reasons for the widening of the urban-rural income gap.They mainly play a mediating role in the impact of financial capital on the urban-rural income gap.At the same time,human capital is a regulatory factor for financial capital to promote the coordinated development of urban and rural areas.Increasing investment in urban and rural human capital can help enhance the promotion role of financial capital in the coordinated development of urban and rural areas,and the positive regulatory role of migratory human capital is better than educational human capital and health human capital.(3)Inclusive finance and capital investing in the countryside are two ways to optimize the allocation of capital between urban and rural areas.Among them,digital inclusive finance can significantly promote economic growth and urbanization,and narrow the income gap between urban and rural areas.However,there is regional heterogeneity,which is more evident in the central and western regions.Human capital has a regulatory role,for the total index of digital inclusive finance and the two sub-indexes of coverage and depth of use,educational human capital has the largest regulatory role,followed by mobile human capital and healthy human capital.As for the degree of digitalization of digital inclusive finance,the positive regulatory effect of mobile human capital is better than that of educational human capital and healthy human capital.Moreover,digital inclusive finance is technical and professional.Compared with financial capital measured by financial scale,efficiency and structure,human capital plays a more significant role in regulation.(4)Capital investing in the countryside has transaction cost saving effect,industrial integration effect and resource allocation effect,which helps to improve the total income of farmers and households,and this effect has obvious heterogeneity.Capital investing in the countryside has a more obvious role in promoting the income of farmers and households in the central and western regions.The study of intermediary mechanism shows that going to the countryside in the form of leasing agricultural land will promote family wage income through non-agricultural employment,and going to the countryside in the form of providing social services will promote family agricultural income through labor productivity,of which non-agricultural employment is a partial intermediary variable,and labor productivity is a complete intermediary variable.The confirmation of the right of agricultural land,the transfer of agricultural land and the economic location of villages play a regulatory role.The possible innovations are as follows: First,the research perspective is innovative,taking capital allocation as a starting point to study how to optimize urban and rural capital allocation to achieve coordinated development between urban and rural areas..The overall centralized development of urban and rural capital and the balanced allocation of capital between urban and rural areas in the process of achieving the coordinated development of urban and rural areas have not been thoroughly studied in academic circles.The article has divided financial capital and human capital in detail,and deeply analyzed the different forms of capital allocation.Second,the research content is innovative,which defines the coordinated development of urban and rural areas from the perspectives of fairness and efficiency.Through the rational allocation of urban and rural resources,a win-win situation of fairness and efficiency can be achieved,that is,while narrowing the income gap between urban and rural areas,sustainable growth of the urban and rural economy can be achieved..Based on the theory of balancing fairness and efficiency,the article points out that it is necessary to pay attention to both fairness and efficiency improvement in urban and rural development,and it further analyzes the impact and mechanism of urban and rural capital allocation on the coordinated development of urban and rural areas from the dual perspectives of economic growth,income growth and income gap reduction,and puts human capital into the analysis framework to verify that financial capital and human capital work together to promote the coordinated development of urban and rural areas,which also enriches the research content of the coordinated development of urban and rural areas.The third is that the research perspective is novel,the empirical research results show that the positive regulatory effect of human capital on financial credit capital migration is superior to educational human capital and healthy human capital.Inclusive finance and capital investing in the countryside are two ways to optimize capital allocation,and digital inclusive finance can promote economic growth and urbanization and significantly reduce the income gap between urban and rural areas.These empirical conclusions provide useful references for promoting coordinated development between urban and rural areas.Moreover,existing research has rarely touched upon some issues,such as in the era of big data,where digital inclusive finance plays a significant role in economic and social development,but the research on the impact mechanism of urban-rural coordinated development is still significantly insufficient;using micro data to quantify capital investing in the countryside provides new empirical evidence for capital going to the countryside to increase farmers’ income.