Research On The Relationship Between Anhui Rural Financial Development And Urban-rural Income Gap

Since the reform and opening up, the economy of Anhui province has maderapid development, peoples living standards have greatly improved. But with therapid economic growth, urban-rural income gap in Anhui province also appears toreduce the trend of expansion. The appearance of this trend, means that the unfairdistribution of income is the government and the society need to solve the problem.Many factors affect the income gap between urban and rural areas, the ruralfinancial development is one of the more important a. This paper will study therelationship of Anhui rural financial development and urban-rural income gap, andexplore its effect mechanism, and put forward to narrow the income gap betweenurban and rural residents in the corresponding policy recommendations from thefinancial perspective.This paper first describes the research background and significance, researchmethods and the possible innovation and insufficiency. Then the paper based on therural financial development theory and related theory of comprehensive income gapbetween urban and rural areas and summary. On this basis, the research on therelationship between theory analysis framework. Secondly, on the Anhui ruralfinancial development and income disparity between urban and rural for descriptiveanalysis, through analysis of the evolution of Anhui rural financial development andurban-rural income gap and points out the shortcomings of the current. Furthermore,based on the actual statistical data, VAR model is established in this paper, throughan empirical study of Anhui rural financial development to the income gap betweenurban and rural areas. An empirical analysis of the results can be concluded: Anhuirural financial development coefficient of relative scale effect on the income gapbetween urban and rural residents, the influence coefficient is positive; the efficiencyof rural financial development on the urban-rural income gap is negative; theinfluence coefficients of the rural economic development in urban and rural incomegap is negative. Finally, based on the empirical results are analyzed, and gives thepolicy recommendations in order to solve the problems in urban and rural income gap in Anhui province. Including loss of financial resources in rural areas, improverural financial environment to improve the market efficiency, the rural financialintegration of financial development between urban and rural area.