Research On China's Financial Development's Impact On Property Income Gap Between Urban And Rural Residents

Since the reform and opening-up,China has witnessed an evident increase in residents' income level,as well as continuous increase in property income and its increasingly rising proportion in resident income.However,with increase in residents'property income,there is an increasingly enlarging gap between urban and rural residents' property income.Therefore,domestic provincial panel data from 1997-2013 is applied in this article to analyze the influence of financial development on gap between urban and rural resident property income.Firstly,the author tries to comb in this article relevant researches on financial development and property income,the result finds that the research was ignored on the relation between financial development and property income gap between urban and rural residents.Secondly,to define the concepts of financial development and property income,and to analyze the influence mechanism of financial development on property income gap between urban and rural residents respectively from the perspective of financial development threshold effect and urban-rural disequilibrium effect of financial development,the result shows that financial development have enlarged property income gap between urban and rural residents.Thirdly,to have measure and status analysis on financial development and gap between urban and rural resident property income,and on such basis to conduct empirical analysis on influence of financial development on gap between urban and rural resident property income.In light of samples nationwide,the regression result indicates both the expanding financial development scale and increasing financial development efficiency have enlarged the gap between urban and rural resident property income.In terms of samples regionally,the regression result shows in coastal regions the expanding financial development scale has shrunk the gap between urban and rural resident property income while the increasing financial development efficiency has expanded the gap between urban and rural resident property income;while in inland both the expanding financial development scale and increasing financial development efficiency have broadened the gap between urban and rural resident property income.Finally,the author has combined the theoretical and empirical analysis results and proposed the following policy suggestions from the perspective of financial development:to strengthen rural residents' awareness of investment&financing and venture;to increase supply of financial products in rural areas;to improve urban-rural disequilibrium of financial development.Expecting to promote increase of rural residents' property income through the above policy suggestions,and then lessen the gap of property income between urban and rural residents.