Effects Of Financial Resource Allocation On Urban-Rural Income Disparity

Since the implementation of innovation and open policy, China has made the achievements in economy which attract many people’s attention, but the difference in rural financial resources allocation and the income gap between urban and rural residents are embodied in the trend of expansion.Analyzing of the allocation of financial resources in China, understanding China’s regional development gap and its influence factors, especially the cause of urban-rural income gap in China, has important practical significance on the construction of a harmonious society in china.At first, this paper studied and comb for domestic and foreign research on financial development and income gap,then basis on the financial allocation theory and the theory of the gap of income between urban and rural areas as the basis, this paper deeply analyses the differences in urban and rural financial resources allocation of the influence of income gap. Secondly, the paper take the western region as a research sample, through longitudinal and transverse comparison and analysis, describes the financial resource allocation between urban and rural areas and characteristics of the urban and rural income in the western region. Using the panel for the western provinces, this paper studies the differences in financial resource allocation and income gap between urban and rural areas, and concluded that the enlargement of the differences between the financial resources allocation between urban and rural areas is the important cause leading to the urban and rural residents widening income gap.Finally, according to the result of empirical analysis, from the angle of financial resource allocation and narrowing the income gap between urban and rural areas in our country this article put forward some policy suggestions.