An Empirical Analysis Of The Impact Of Rural Financial Development On Urban-Rural Income Gap In Shandong Province

The reform and opening up has gone through 40 years.The Chinese economy has always maintained a steady pace.The people's lives are getting richer and the people's wallets are bulging.However,due to the dual structure of urbanization,the income gap between urban and rural residents is still in today's China.A major difficulty in development.From the data of per capita income of rural residents and per capita disposable income of urban residents from 1978 to 2016,it can be seen that the gap between them has widened from 2.57 times to 2.95 times.This data is only a comparison of the income of urban and rural residents,has not counted various social benefits,subsidies,etc.,otherwise the gap will be greater.In the opening year of the Nineteenth National Congress,how to solve the problem of income gap between urban and rural residents has become an important task for the leaders of the country and the Party.No matter whether it is the construction of a new countryside or the accurate poverty alleviation,it aims to narrow the income gap between urban and rural areas and make the people When it gets rich,the country is stronger.Shandong Province has a long history of agriculture and is a large agricultural province in China.The value added of agriculture has long been the first in all provinces in China.However,at the same time as economic development,the income gap between urban and rural residents has always existed.The data shows that the per capita net income of rural residents and the per capita disposable income of urban residents in Shandong Province were 1,2930.4 yuan and 3,1545.3 yuan,respectively.It can be seen that the income of urban residents is 2.44 times that of rural residents.Therefore,when formulating development plans,Shandong Province also emphasized that rural financial development is a key point in narrowing the income gap of urban residents.At present,rural finance in Shandong Province has caused problems in its own development.On the one hand,from the perspective of layout,the distribution of formal financial institutions in rural areas is irrational,and most commercial financial institutions have withdrawn from rural areas.On the other hand,the function of rural financial institutions is not enough to meet the needs of rural residents.Of course,for informal finance,due to the lack of formal supervision,there are many problems with the actual imperfect development.Therefore,properly regulating rural financial markets and effectively improving the allocation of financial resources are the key issues in promoting rural economic development and narrowing the income gap of urban residents.This article will analyze the impact of rural financial development on the urban-rural income gap and its influencing factors based on the current research status at home and abroad and the current situation in Shandong Province.This paper analyzes the relationship between finance and urban-rural income gap from a theoretical perspective.It can be found that financial development can effectively reduce the urban-rural income gap.If the development of rural finance reaches a certain level,it can further reduce the income gap between urban and rural areas;using the VAR model,it is found that rural financial development will increase the urban-rural income gap,but rural financial efficiency can reduce the income gap between urban and rural areas..Therefore,according to the combination of theory and demonstration,we can further increase rural capital inflows,effectively stimulate the growth of informal finance,and bring effective suggestions for urban and rural resource allocation.