Research On The Influence Of Shaanxi Rural Financial Development On Income Gap Between Urban And Rural Areas

Since reform and opening up, Shaanxi province has made a series of economic system reform promoting the rapid development of economy.People’s material and cultural life level has improved significantly, but the problem of income inequality between urban and rural areas in Shaanxi province also gradually highlights. In many factors affecting the income gap between urban and rural areas, rural financial development is one of the most important; this article from the Angle of theory and empirical has carried on the theoretical and empirical analysis, about rural financial development on the influence of income gap between urban and rural areas in Shaanxi province.Based on the review of domestic and foreign financial development and urban-rural income gap related literature, from the related theory of rural financial development and income distribution, this paper analyzes the influence mechanism of the rural financial development to the income gap between urban and rural areas, summarizes the deficiency of the rural financial development in Shaanxi province. On the basis of analyzes, this paper select efficiency of rural financial development, rural financial development scale, the income gap between urban and rural areas and other related indicators, using cointegration test, granger causality test,impulse response analysis methods, empirically the Shaanxi rural financial development on the influence of income gap between urban andrural areas in Shaanxi province. The results show that the improvement of efficiency of Shaanxi rural financial development has obvious promoting effect of convergence to the income gap between urban and rural areas,but the rural financial development scale is not the granger reason of income gap between urban and rural areas, it has little influence to income gap between urban and rural areas.On the basis of the theory and empirical analysis, the paper put forward relevant Suggestions, Such as strengthening the construction of credit system, establish relevant risk sharing mechanism, constructing reasonable financial regulatory system, etc. to the further development of Shaanxi rural finance to narrow the income gap between urban and rural areas.