The Effects Of Financial Structure On Distirbution

Unequal income and the excessive gap between the rich and the poor is a seriousproblemfacing our society for the time being. In the theory, individual labor andcapital factors determine the income of each person, China is a country of laborendowment, lack of the capital factor.For the limited capital elements of the unevendistribution of be the main reason of area, industry and individual income gap. Thecapital allocation is the core function of the financial, the imbalance of capital fac toris also the imbalance allocation of financial resources, many critics pointed out thatthe financial has played a "robbing the poor to the rich" role.The measure of this imbalance by traditional financial overall index or financialdeepeningoverall index is obviously inappropriate, financial structure is a moreappropriate index. Financial structure is a series of all financial institutionsandfinancial products constitute theindex. You can display a country’s financialmarket,the degree of monopoly,regional financial resources quantity, financial marketcharacteristics and so on.Financial structure is multiple effects on income distribution, on one hand tojudge the financial structure whether reasonable should see whether it can meet thefinancial function of financing, the excessive pursuit of the total situation, evolutionof financial structure in China will lag the development and financial quantity, thismay lead to failure caused by the resource allocation function. On the other hand,even if meet the financial function, resource allocation is efficient, but if thisefficiency comes at the expense of based on fairness, then the financial structure mayextend this unfair, to further expand the income gap between the.Through the study on the provincial panel data of the effect on incomedistribution of financial structure.We choose three Perspective of financial structure:the bank share structure, regional financial structure and financial structure analysis.On this basis, through into China11years of data, using the method of econometricmodel to analyze the financial system will forincome distribution assumptions were estimated, and obtained the following conclusions:(1) the bank share structureinfluence on city income distribution accords with the inverted "U" type, most of theprovinces in China have been in07years after entering the inverted "U" curve to theright.(2) the regional financial structure imbalance has great negative impact on theprovincial GINI coefficient (3) the financial impact of financing structure on theincome gap is not obvious, that means, loans and securities is neutral for two modesof income distribution.The conclusion of the study can provide scientific theoretical basis forgovernment departments to formulate financial policies, this paper puts forward somepolicy suggestions to promote the rational distribution of income, which is ofimportant significance for further promoting China’s financial industry upgrading andsecuritization.