Financial Development And Urban-rural Income Gap

Since the beginning of reform and opening up, China's gradual widening urban-rural income gap, China's urban-rural income gap has been first in the world. Income Gap in China constitutes an important factor. To build a harmonious socialist society need to narrow the income gap between urban and rural areas and narrow the income gap between urban and rural areas is key to raising the income of farmers; solve the "san nong" is the core issue of raising the income of farmers and narrowing the income gap between urban and rural areas, because of this, This paper started on the financial impact of the development of the income gap between urban and rural research.between the Financial development and the distribution of income gap, there are three different perspectives: first expanding shrink, expand and narrow. Specific to the impact of financial development on the rural-urban income gap, the key is whether or not the financial development of a "financial broadening." make rural residents can have access to financial markets, If in the process of financial development for rural residents relatively high barriers to access to financial markets, it will widen the income gap between urban and rural. Instead it will narrow the income gap.According to statistical data analysis, we can see that China's urban and rural economic development through financial channels uneven development has widened the income gap between urban and rural areas, while China's rural financial depression rural residents, the barriers to SME access to financial markets for financing is relatively high. It also widened the income gap between urban and rural. Positive tests also confirmed this point. Solve the problem of the income gap between urban and rural areas, can take the following measures: First of financial regulation. Rural financial markets led the government to change the mandatory system supply model, given to the development of the rural financial system to provide a relaxed environment for innovation, gradually changing to the induction system changes, financial balance urban and rural development. Second, intensify efforts to promote urban and rural areas of financial regulation peasant incomes. These include the following aspects: to curb the outflow of funds, the credit support for SMEs. credit support to the agriculture and farmers.