An Empirical Research Of The Financial Development On The Impact To Urban-rural Income Gap In Hunan Province

From the reform and opening up, urban and rural income gap in Hunan Province is gradually increasing. The current income gap between urban and rural areas in Hunan province in the central position is among the top, which seriously affected the economic development in Hunan Province and social stability. To build a socialist harmonious society need to narrow the income gap between urban and rural residents, but the key of narrowing the income gap between urban and rural residents is to improve the income level of rural residents. Based on this, this article tries to doing research of the financial development on the impact to urban-rural income gap in Hunan Province.Between the Financial development and the distribution of income gap, there are three different perspectives: expand, narrow and expanding shrink. 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 low barriers to access to financial markets, it will narrow the income gap between urban and rural. Instead it will widen the income gap.According to statistical data analysis, we can see that urban and rural finance development in Hunan Province shows "dual financial structure," the rural finance development is backward. Meanwhile, from cities and states, financial development shows regional imbalance. Hunan's urban and rural economic development through financial channels uneven development has widened the income gap between urban and rural areas. Positive tests that the financial development and urban-rural income gap exists between the long-term equilibrium relationship, and efficiency of financial development, financial activities(the proportion of expenditure on agricultural loans) will narrow the urban-rural income gap, and financial development will be expanded urban-rural income gap, and financial development will be expanded urban-rural income gap. In addition, financial development efficiency, financial activities, the scale of financial development affect the industrial structure, urbanization, openness, impact on income levels, thus further affecting the urban-rural income gap. Overall, the financial development exacerbate the income gap between urban and rural areas. Address urban-rural income gap, the financial control measures can be taken as follows: first, to curb the outflow of funds in rural areas, increase the flow of capital. Second, to establish multiple rural financial system, improve the financial market system. Third, attach importance to the financial system's efficiency and quality. Fourth, accelerate the adjustment of industrial structure in rural areas, increase financial transfer efforts.