The Study On The Correlation Between Financial Development And The Income Gap Of Urban Inhibition

Along with economic development, and people's income increasing , the problem of income gap between the people has increasingly become a high-profile topic, the idea of building a harmonious society's proposed, has even more made this issue advance to a policy level.Along with the rapid economic development,the financial system is gradually expanding,too.The finacial size become more and more huge.The relation between financial development and income gap has also become more and more noticeable.The goal of this artical is find out the relation and give some suggestion to reduce the income gap and promote the development of finance simultaneously.Hoping that there will be some reference value.The focus of this paper is to analyze the current level of Chinese financial development and the income gap between urban residents finally give some countermeasures.This artical contain four parts.The part 1 introduce correlative reserch about financial development and income gap ,and then bring forward the reserch thread and reserch method;The part 2 discuss correlative basic theory about financial development and income gap ,and how to influence each other,then give a theory model.In part 3, I first choose the index which express the financial development level and income gap,by which I compared the historical data about 15 years.which showing that the income gap between urban residents is shrink first and expand later. Correspondingly,the financial volume and financial efficiency is gradually increasing.And then I do some empirical Test,such as relativity analysing, Granger Causality Tests and Unrestricted Cointegration Rank Test.Finally,in part 4,I give some suggestions and counter-measures to deal this problem.This artical holds that we can change this situation by easing financial restraint ,promoting financial deepening,and some income policy such as small loans and so on must be taken.