Study The Effect Of Financial Support And Financial Development To The Income Gap In Urban And Rural Areas

The speed of China's economic development is the world's attention, but the development process left a wide range of problems, such as environmental pollution, income gap, regional differences and other issues.This article focuses on the current hot issue of income gap between urban and rural areas.The income gap between urban and rural areas is related to the national economy and the people's livelihood, social stability, national sustainable development and other major issues.In recent years, the state has issued the fiscal and financial policy, promote the growth of people's income, but in urban and rural income gap is still outstanding, then the economic growth in the process of financial support and development of the financial policy is how to affect the income gap between urban and rural areas?At present, China's economic development is in the growth rate of the shift period and the economic development and economic development in the period of labor and economic development in the early period of stimulus policies to digest.Facing the special situation of three superimposed, balance urban and rural income gap, maintain social stability, make the fiscal and monetary policies to better serve economic development, social development and balance of income increase is particularly important.Chongqing is a big city with large rural areas, urban and rural income gap as one of the major issues in Chongqing urban and rural development, has become a major obstacle to economic development and the construction of a harmonious society.The coexistence of big cities and large rural areas in Chongqing city is very similar to the whole country, and almost made chongqing as a microcosm of the country to study. Therefore, this paper selects Chongqing city as the research object, from the perspective of financial support, financial development to explore the urban-rural income gap between urban and rural development, will undoubtedly play a demonstration and leading role to other provinces in china.The historical analysis and description of the influence of financial support and financial development on the urban-rural income gap in Chongqing city.With 2009-2014 years of empirical analysis of panel data, found that the financial support of the majority'of the region to narrow the income gap between urban and rural areas;Only minority economic development better urban function district and urban development district instead:urban function district and part of the urban district development district financial development expands the income gap between urban and rural areas, in some areas is reduced to the income gap between urban and rural areas.It is found that the economic development of Chongqing is better in the area of financial support and financial development. which has not played a very good role in narrowing the income gap between urban and rural areas.Backward areas of economic development and financial support and financial development to narrow the income gap between urban and rural areas has played a more significant role, but the overall income of these areas is generally not high.For similar Chongqing urban functional areas and urban development area, the economic development is better, but the financial support and financial development to narrow the gap between urban and rural income gap is not significant, it is recommended to focus on structural adjustment.First, to encourage and support the full coverage of the banking financial institutions to achieve full coverage of the township, in the case of good financial development in the city more attention to rural finance.Second, increase polic\ financial institutions support for agriculture, in particular, to cooperate with the financial supporting agriculture policy implementation, a two pronged, elimination of common policy inclined to the city, to ensure the balanced development of urban and rural areas.Third, to play the role of rural state-owned and joint-stock commercial banks to support agriculture, combined with preferential policies such as fiscal and taxation, to encourage rural loans in line with the conditions.Fourth, efforts to foster the diversification of rural finance, the relaxation of rural financial market access threshold, and gradually eliminate the barriers to entry into the rural financial market, the appropriate development of private finance.Fifth, the financial expenditure to coordinate with the overall economic development and make up for market regulation loopholes, focusing on the market in the region of the neglect of the market, to guide the balanced development of the economy.For similar northeast and Southeast Chongqing economic development is relative]) backward areas, proposed to promote development while taking into account the structure.First, the government expenditure to encourage more enterprises or industrial transfer to the economic development of the blank region, especially in the economically less developed areas, so as to stimulate these areas of economic growth and increase the income of residents in these areas.Second, increase the financial input of local education, perfect the system of compulsory education. Economic development in backward areas tend to education is relatively backward, not perfect.Therefore, in order to increase the income, we must constantly improve the quality of residents, improve the education system, the development of education, increase investment in education, especially the nine years of compulsory education.Third, the government should actively guide financial industry in these areas of development, encourage the development of city commercial bank, rural commercial banks, private banks and other, inject new vitality into the local financial sector, so as to promote the development of the local economy, the improvement of per capita income, narrowing the income gap between urban and rural areas.