Research On The Impact Of Income Inequality On Household Debt In The Process Of Urbanization In China

Currently, many countries in the world experiencing varying degrees of urbanization development, the flow of population to cities and towns has become a worldwide trend. Urbanization development experience of Western countries shows: urbanization is to promote economic growth and shorten the gap between urban and rural areas of vital power, the higher the level of urbanization, the higher the efficiency of social production, the gap between urban and rural areas will also be reduced. It should be noted that, earlier, the income gap between urban and rural areas in the development of urbanization is expanding. Today, China is in the industrialization and urbanization accelerated development stage, with the advance of urbanization process, income inequality has changed dramatically, the larger the income distribution gap, but with a downward trend, household debt has increased rapidly. This paper attempts to examine the urbanization of income inequality on household debt, the conclusions of the government to develop a scientific and rational urbanization strategy, the income distribution system and consumer finance policy has important theoretical and practical significance.Based on the theory of urbanization, household debt and income inequality. This paper use literature research, comparative analysis, theoretical analysis and empirical research methods to study the process of urbanization in China income inequality on household debt. This paper describes the theory of urbanization, income inequality and household debt, construct the urbanization household debt to income inequality impact mechanism; Then use 2005-2014 related variables data, analysis the relevant variables trends situation characterized. and then building econometric models, empirical process of urbanization in China income inequality on household debt; Finally, based on research findings, policy recommendations targeted. In this paper, the main conclusions are:(1) Prices, financial development, economic development and the level of household debt significantly positive correlation.(2) In the region I, II and III areas, urbanization mean water has a positive impact on household debt, but its impact is different.(3) The urbanization of income inequality on household debt has regional differences in the region I and II, Income Inequality, and household debt negatively correlated; in Zone III, income inequality and positively related to household debt. Thus, this paper suggests:(1) in the region I and II, the government should adhere to the direction of the development of urbanization, to further reduce income inequality, and prevention and control of financial risk due to family problems caused by the excessive growth of debt;(2) in the III area, the government should formulate local conditions scientific urbanization development strategy to accelerate the reform of the income distribution system, improve the social security system, in order to meet reasonable consumer borrowing demand.The main innovation of this article: Previous studies mainly to the level of urbanization, income inequality and household debt are discussed in isolation from, the literature rarely brought together with research, this article attempts after the introduction of the level of urbanization study on income inequality in household debt, is about the level of urbanization, income inequality and household debt into being a unified theoretical framework. This study by scholars study income inequality provides a new perspective and dynamic relationship between household debt.