The Research On The Rural Financial Efficiency Impact On Urban-rural Income Gap Based On Spatial Econometrics

With the adverse impact of urban-rural income gap to social economy becomes increasingly apparent, researchers are focusing on the radical causes of the urban-rural income gap and its conduction path in China. After years of industrious exploration, the researchers have successfully demonstrated the effect and its mechanism of a variety of factors generated by the urban-rural income gap. However, research on the impact of financial efficiency to income gap is still inadequate. Finance is the core of modern economy, financial resources can widen the income gap between urban and rural residents by uneven flowing between urban and rural areas. This paper measure the impact of rural financial efficiency to urban-rural income gap. The text is divided into six parts. First of all, this paper summarized the methods and conclusions of previous studies by researching literature. The second part, this paper define the meaning of the rural financial efficiency and urban-rural income gap, then illustrate the mechanism and its conduction path between the rural financial efficiency and urban-rural income gap, come to a conclusion that rural financial efficiency follow the path "inefficient rural finance-binary development of urban and rural finance-credit rationing-credit counter current-capital gains and labor wages-urban-rural income gap" impacting on urban-rural income gap. Part Ⅲ, this paper use various statistical indicators to analyze the status of urban and rural financial development and the urban-rural income gap, analysis of the evolution of rural financial development and urban-rural income gap from both horizontal and vertical dimensions. Part IV, this paper have a comprehensive study of rural finance development by establishing evaluation index system, using Canonical correlation methods to reduce dimension of the pluralist system, using DEA methods analysis rural financial input-output efficiency, obtain the value of rural financial efficiency from1998to2010in China. Part V, this paper use Moran index and LIZA diagram analysis evolution and spatial layout of China’s urban-rural income gap from the global and local effects respectively, then use three kinds of spatial econometric model to analyze the impact of rural financial efficiency to urban-rural income gap. Finally, this paper make the corresponding policy recommendations according to the previously conclusion. The paper concluded:1.The total amount of rural financial resources has increased year by year, but the overflow rate of rural financial resources also gradually increased. There are significant differences in degree of financial development in rural areas. Overall, the urban-rural income gap in China is gradually expanding, income gap in different areas are significantly different.2.On the whole, China’s rural financial efficiency has been significantly improved since the implementation of the Rural Finance Deal. Rural financial efficiency situation in the eastern part of is generally higher than that in western region, and it showing obvious unevenly distributed state in different areas.3.The urban-rural income ratio is high in the west and low in the east and space cluster effect is significant. The improvement of rural financial efficiency can reduce the gap between urban and rural area, the influence of space factors on the impact of the income gap is also obvious. The main innovation of the article lies in:1. Studying the rural formal financial efficiency by establishing CCA-DEA model;2. Measuring the impact of rural financial efficiency to urban-rural income gap by constructing spatial econometric model.