Analysis Of The Impact Of Financial Development On The Income Gap In China Based On Space Measurement Method

The financial industry is an important part of modern economy and social development,the quality of its development is directly related to contemporary economic growth and development.In contemporary societies, financial development can affect many aspects of social life, for instance, financial development not only affect economic growth and the allocation of resources, but also impact the adjustment of industrial structure.However, in recent years, although China’s total social and economic resources has been rapidly developed, people’s living standards gradually close to a well-off standard of living, but income gap preached an ever widening, causing serious "polarization" phenomenon, which is extremely unfavorable for the stability of the economic and social development and civil society. How to improve the income level of residents in backward areas to narrow the gap and how to improve the distribution of income among residents has become the focus of building a well-off society that can not be ignored.Since entering the 1990 s, some experts and scholars from the perspective of financial development gradually began to discuss the various factors that have an impact on the income gap. The study concluded that financial development plays an underestimated role in narrowing the income gap in the process of development and it also allows us to rethink the causes and process of income gap.Therefore this will play a guiding role in developing and adjusting our macroeconomic policies play a guiding role.In this dissertation, according to the idea of "spread Way- Analysis- Empirical Test-policy recommendations," to study the effect of financial development generated on income gap.In the past, analysis of the literature on these problems,most scholars used a measure of financial depth level as the indicator of financial development whereas this approach has some limitations. In this paper, improving the previous modus operandi,using the financial efficiency and financial scale as a measure of the level of financial development to measure the level of financial development on a whole.In addition, from the current situation of China’s economic development, with the rapid economic development, rural non-farm economy gradually turned from the field of agricultural production to other areas of production, the amount of deposits and loans of financialresources of the town is far greater than the growth rate in rural areas. Consequently,further widening the gap of urban-rural income being widen further. Finally, according to the combination of theory and practice, the author has put forward several recommendations from the aspect of enhancing the financial system, guiding to the agricultural funds more reasonable, improving the financial allocation of resources, and enacting different policies in different areas.