The Relationship Between Rural Financial Development And Urban-rural Income Gap-Based On Hubei Province

In the modern society,the financial industry plays an important role in the modern market economy.The financial development not only has a great influence on economic growth,but also on wealth distribution.Since the reform and opening up,as the blueprint of'the rising of central China',the economy of Hubei province has made rapid development,people's living standards has greatly improved.But with the rapid economic growth,urban-rural income gap in Hubei province also appears to reduce the trend of expansion.In2014,the ratio between actual average disposable income of urban residents and rural real income from 1.7 in1978 expended to 2.6 in Hubei province.This has seriously affected the sustained economic development and social stability,improve the income gap between urban and rural areas has been hanging over us.Thesis based on the status of rural financial development of Hubei,by collecting data related to financial development and actual urban-rural income,establish an empirical model to explore the relationship between rural finance and the income gap between urban and rural areas.Then proposed a series of initiatives to promote rural financial development to increase incomes,reduce poverty reduction and the income gap between urban and rural areas.Thesis built a VAR model to test financial development and income gap between urban and rural residents.Hubei Province showing the relative size of the gap between urban and rural incomes and rural financial development is related to the two mutually Granger the reason,rural financial resources continue to "outflow" led to the expansion of the income gap between urban and rural residents;rural financial efficiency and the income gap between urban and rural residents negatively correlated,rural deposits converted to a higher proportion of rural credit in favor of narrowing the income gap between urban and rural residents;rural Finance allocative efficiency and the income gap between urban and rural residents negatively correlated increase in the proportion of township enterprises loans help to narrow the income gap between urban and rural residents;rural finance conversion efficiency and allocative efficiency of rural finance is unidirectional Granger cause urban-rural income gap.By the impulse response can be seen:a positive impact for rural financial development indicators,in the subsequent long period of time,on average,the income gap between urban and rural areas of response are negative,indicating that the rural finance development of urban and rural residents can really narrow the income gap.