The Impact Of Rural Finance Development In Liaoning Province On The Income Differences Between Urban And Rural Areas

After 40 years of reform and opening up,China's economy has changed from high-speed development to medium-and high-speed development,and economic development has entered a new normal,with more emphasis on quality rather than blind pursuit of speed.The economic level has reached a new level.The people's income has been improved and their lives improved.In 2016,Liaoning's rural per capita net income was 12,870 yuan,which was 48 times that of 1980.However,while we are seeing exciting achievements,some problems that are not consistent with disharmony still exist.For example,from the perspective of income growth,rural areas lag far behind cities.The income gap between urban and rural residents has continued to expand.This means that the problem of unfair income has become increasingly significant.This is a very common problem.Many scholars and experts have conducted in-depth research and exploration on this issue.Some scholars pointed out that the problems in the process of rural financial development in Liaoning Province may be one of the most important reasons.Therefore,the study of this paper shows its profound practical significance.This article firstly introduced the topic background and research significance,research ideas,research methods.Then the paper combs the theoretical results of rural finance and finds that the rural financial development theory has experienced three major perspectives on the time dimension;the urban-rural income theory is also divided into many schools.The body part gives a detailed discussion of rural finance.Rural finance is a relatively broad concept.The actual rural financial system involves many fields,including banking,insurance,securities,and futures.This article is based on the research of predecessors,as well as comprehensive consideration of the availability of index statistics and the convenience of numerical calculations.The research scope of rural finance defined in this paper is banking financial institutions.At the same time,because rural finance is also a very abstract concept,in order to quantify this concept,this article will be refined into three indicators of rural finance,namely:First,the balance of deposits and loans indicators.Second,the proportion of loans to rural enterprises.Third,deposit and loan conversion efficiency indicators.The index of the proportion of deposits and loans balance measures the scale of rural financial development.The ratio of loans to TVEs measures the structure of rural financial development.The conversion efficiency of deposits measures the efficiency of rural financial development,that is,the efficiency of financial institutions converting rural deposits into rural loans.Financial development affects the urban-rural income gap mainly through four channels.That is,a threshold effect.Second,reduce poverty.Third,non-equilibrium effects.Fourth,dripping effect.Among them,financial development through the threshold effect path will widen the income gap;financial development will reduce the income gap by reducing the poverty effect path;financial development will increase the income gap through the unbalanced effect path;financial development will reduce through the trickle effect path Income Gap.Non-equilibrium effects and reductions in the effects of poverty,threshold effects,drip effects,and non-equilibrium effects are also different at different stages of financial development.Therefore,empirical results are needed to test the ultimate role of rural financial development in the income gap between urban and rural residents.effect.Based on relevant data from 1994 to 2015,a vector autoregressive model(VAR)was established.Through empirical analysis,it was known that expanding the scale of deposits and loans in rural financial institutions and increasing the proportion of loans from rural enterprises will increase the number of urban and rural residents.Income Gap.Increasing the efficiency of conversion of deposits in rural financial institutions into loans will help reduce the gap.Finally,the paper combines the theoretical analysis and empirical analysis of the comprehensive results of the proposed problems of rural financial development in Liaoning Province,put forward policy recommendations:the establishment of a sound rural financial institutions,such as village and town banks,small loan companies,etc.;strongly support the development of township and village enterprises,Strengthen the support for the loans of township enterprises;deepen the reform of the rural financial system.