Research On The Impact Of Rural Financial Development On The Urban-Rural Income Gap In Henan Province

In recent years,the economy of Henan Province has continued to develop at a rapid rate,and the income level of farmers has grown continuously,breaking new heights.However,it is accompanied by the fact that the income disparity between urban and rural residents is still grim,and this feature has been linked with the urban and rural areas of Henan Province in recent years.The intensification of financial unbalanced development has become even more pronounced.The expansion of the income gap between urban and rural areas will not only harm social harmony and stability,but will also hinder the building of a well-to-do society.Rural finance,as the core driving force for the development of modern rural economy,affects the income distribution of rural residents to a great extent,and determines the level and direction of rural economic development.Based on the fact that informal informal finance in rural areas in Henan Province has occupied the rural lending market with absolute advantages,the impact of rural formal finance and informal financial development on income disparity between urban and rural residents in Henan Province has been studied,and the mechanism of rural finance affecting urban and rural residents' income has been analyzed.The path is of great significance for how to effectively develop rural finance,narrowing the income gap between urban and rural residents,and achieving urban and rural planning and implementation of the "village rejuvenation strategy."Based on the definition of related concepts,theoretical analysis and literature review,this article follows the concept of “status description-mechanism analysis-empirical analysis-policy advice”.Through research,this paper draws the following conclusions:(1)In the statistical sense,the changes in the scale of rural formal financial development,the efficiency of formal financial intermediation,and the scale of informal financial development can all lead to changes in the income gap between urban and rural residents,that is,there is a long-term cointegration.(2)There is a two-way Granger cause of rural formal financial development scale and urban-rural income gap,that is,the expansion of rural formal financial development can widen the urban-rural income gap.In turn,the widening urban-rural income gap will also stimulate rural formal finance.The expansion of the scale of development,while the formal financial intermediation efficiency in rural areas and the scale of informal financial development are the one-way Granger causes of widening the urban-rural income gap,indicating that the efficiency of formal financial intermediation has increased,and the scale of informal financial development has increased.Larger urban-rural income gaps,but not vice versa;(3)A positive impact on the scale of rural formal financial development and agency efficiency will cause the urban-rural income gap to expand first,then shrink,and then expand,and expand the urban-rural income gap as a whole;Rural informal financial development scale ratio has a positive impact,the first 7 issues After narrowing the income gap between urban and rural areas,it turned positive after the seventh period and expanded the income gap.Since the seventh period was replaced by a stronger positive effect,the expansion of informal financial development in rural areas as a whole has also widened the urban and rural areas.Income Gap.(4)From the aspect of variance decomposition,the contribution rates of rural formal financial development scale,intermediary efficiency,and informal financial development scale ratio to urban-rural income gap were 34.1%,25.2%,and 14.0%,respectively.Through analysis,the author believes that the causes of rural finance widening the income gap between urban and rural areas are: the weakening of the role of rural formal financial institutions in support of agriculture,resulting in a large outflow of rural financial funds;informal informal financial institutions in rural areas unregulated development without supervision,lower farmers' income growth.In order to further promote the development of rural finance and improve the income gap between urban and rural areas,this paper proposes the following countermeasures: curbing rural capital outflows,guiding financial capital to rural areas,agriculture,and farmers;reducing rural financial credit thresholds and raising rural financial supply levels;recognizing rural informal finance Its legal status,standardize and supervise its development;enhance the ability of rural credit funds to reproduce,narrow the income gap between urban and rural areas;ensure the expansion of rural financial scale and efficiency,and at the same time pay attention to development;speed up the construction of rural credit information system;crack the difficulty of farmers' loans;Actively learn the concept of rural finance and expand the financing channels for farmers.