A Study On The Impact Of China 's Financial Development On The Income Gap Between Urban And Rural Residents

Since China’s reform and opening up, China’s rapid economic growth, economic scale has the second largest in the world in 2010, the per capita GDP also step into the ranks of middle-income countries, but along with the development of economy, our country income inequality problem also gradually revealed, especially the contradiction between the income gap between urban and rural areas. The income gap between urban and rural residents will not only affect the living standard of rural areas can cause insufficient domestic demand in China, in turn, affect the healthy development of the national economy.Domestic scholars in household, industrial structure and urbanization of our country urban and rural income gap has widened the reason has carried on the related research, and based on the perspective of financial development as a starting point. It is well known that financial development through the way such as financing role in economic development and other relevant variables, in turn, affects the income gap between urban and rural areas,therefore, research on financial development and its effect on the income gap between urban and rural areas of relative path and find the reasonable improvement measures, to improve the situation of widening income gap between urban and rural areas, the construction of a harmonious society is a major step.This paper reviewed in terms of theory and empirical aspects of the relationship between financial development and income distribution of the research both at home and abroad, then effect on financial development in urban and rural income gap of the specific path for theoretical research, this part of the main point of economic growth and analyzed from the Angle of human capital, industrial structure, so that the back of the empirical part with theoretical basis. Next to China’s financial development and urban-rural income gap,the change trend and current situation of the next in the empirical part of the selection of relevant data in China 1978-2013, on the basis of theoretical model and the related empirical model, the influence factors related to the income gap between urban and rural areas in our country and our country finance development on the conduction mechanism of the income gap between urban and rural areas, respectively, has carried on the empirical analysis, this part of the theory of the front from the empirical support, formed the financial development, economic growth, the income gap between urban and rural areas, in the role of financial development affect human capital and the income gap between urban and rural areas, in the role of financial development affect the industrial structure and the income gap between urban and rural areas in three main line, make clear more clear, finallyon the basis of the results, from the perspective of financial development put forward policy Suggestions on narrowing the income gap between urban and rural areas.