The Study On The Urban-rural Income Distribution Effect In Chinese Financial Development

Since the reform and opening up in 1978,China's economy has developed rapidly.At the same time,the income gap between the residents has been widening,which is not conducive to the stability and harmony of the society.The income gap in China is mainly reflected in different regions,among industries,among income groups and between urban and rural areas.The income gap between urban and rural areas is the main cause of the widening gap between the rich and the poor in China,which has greatly influenced the social class trend of our country.In addition,there are many factors that cause the increasing income gap between urban and rural residents in our country.As a kind of economic resources,the proportion of their distribution in urban and rural areas directly affects the total economic total in different regions,and thus has an impact on the income of the residents.Therefore,the financial factor is also one of the important factors.In order to close the urban and rural residents,reduce the gap and gap between them,the financial impact on it is very necessary to discuss.This paper describes the influence of Finance on economic development through the economic monetization,describes the financial development with the financial correlation rate,and describes the development of the urban-rural income gap from the perspective of the ratio of urban and rural income.Based on the data model of the thirty provinces in China,including the provincial and autonomous regional panel data in 2002-2015 years,the influence of the financial factors on the income of urban and rural residents in China is further explored.Generally speaking,the impact of Finance on the income of urban and rural residents is not unilateral,but changes with the length of time.In the short term,finance does have a negative impact on the income gap between urban and rural residents;but in the long run,finance will reduce the gap,which confirms the Kuznets inverted U curve hypothesis.Under the implementation of the spirit of the nineteen major conferences of the party,this demonstration puts forward new suggestions and strategies for the development of rural finance and reducing the income gap between urban and rural residents.