The Empirical Analysis Of China's Urban-rural Income Gap And Uneven Financial Development Between Urban And Rural Areas

At present, China's widening income gap between urban and rural areas becomes larger and larger. In 2009, urban residents have an annual disposable income of rural resident's per capita net income of 3.3 times, which has not taken factors such as urban and rural health care, education, and unemployment insurance systems, etc. into account. Urban-rural income gap has become a huge influence on further economic development and building a harmonious society. Domestic and foreign scholars have conducted a series of reasons why Urban-rural income gap between so large in our country. This article attempts to analyst Urban-rural income gap right from an imbalance of financial development between urban and rural areas.After referencing the scholars'paper at home and abroad, analysis of the financial difficulties faced by rural areas in contrast to urban areas, and then summarizes the four economic mechanism which financial development affects economic; And then carried out co-integration test and Granger causality test through the data of the 1985-2008 financial development of China's urban and rural areas and urban-rural income gap, in which the financial development indicators for measuring aspects of urban and rural areas has made bold exploration of the total loans and GDP with the urban and rural areas the ratio of total savings deposits of urban and rural areas and the ratio of GDP, urban and rural fixed assets investment and GDP, the ratio of the integrated urban and rural areas on behalf of their respective levels of financial development. By empirical tests and found that urban-rural income gap with the unbalanced development of urban and rural financial has close correlation and causation.For the theoretical analysis and empirical analysis, this paper presents a series of policy recommendations for measures to improve the rural financial service system, including improving the rural financial ecological environment, improve the rural policy-oriented financial system, leading commercial and financial activity of rural market, regulate the private financing, establishing and improving the rural insurance system and so on, through a series of measures to address the plight of rural finance, and further reduce the extent of imbalance between urban and rural financial development, thus narrowing the urban-rural income gap.The results of this study can be part of the explanation of why the current urban-rural income gap is so big, and made a series of development of rural finance, slow the uneven development of urban and rural financial measures to the extent possible, not only enrich the research in this field, but more importantly yes, has a strong practical significance.