Credit Allocation Structure, Financial Marketization And Income GAP Between Urban And Rural Areas

China's economy has developed rapidly since the reform and opening up,people's material and cultural living standards have also been increasing in the decades.In 2010,they overtook Japan as the world's second largest economy.However,it still faces a severe situation of uncoordinated income distribution.The relative income gap between urban and rural areas has increased from 2.65 in 1999 to 3.31 in 2015,and it has remained at a high level for a long time.As the core of the modern economy,finance plays a significant role in promoting economic development and coordinating the allocation of market resources.The main channel for the supply of capital resources in China's financial system is basically occupied by banks.Although the rapid development in recent years has initially formed a fully functional modern service banking system,there are still various problems.In addition,due to the late start of financial marketization and reforms in China,there are serious differences between urban and rural areas,which cause a large amount of credit resources and labor to flow to large and medium-sized enterprises and cities.Rural development is lagging behind,and the allocation of credit resources to cities is tilting.The development of urban and rural economies has a huge impact.This inefficient and unbalanced allocation has exacerbated the urban-rural income gap in China.Judging from the past period of time,the income gap between urban and rural areas has gradually expanded along with urbanization and marketization.At this stage,the country has proposed rural revitalization,urban-rural economic integration,and narrowing the urban-rural income gap.What impact does the credit allocation structure and financial marketization have on the urban-rural income gap? How to balance the allocation of bank loans and steadily push forward the process of financial marketization so as to narrow the income gap between urban and rural areas has become an important issue to be studied urgently.This article uses empirical analysis method and normative analysis method respectively.The normative analysis method mainly focuses on literature review and theoretical combing.Based on combing related theories,it explores the mechanism of credit structure allocation and financial marketization affecting urban-rural income gap.The empirical analysis method mainly uses descriptive statistics method and quantitative regression method.It uses the empirical data of various provinces and cities in China from 1999 to 2015 to take the urban-rural income gap as the dependent variable,the credit allocation structure and financial marketization as independent variables,and selects the level of education at the same time.As a control variable,urbanization rate,industrialization level,etc.,a panel data model was established and stata14.0 was used to study the relationship between credit allocation structure,financial marketization,and urban-rural income gap under the fixed effect model.The main research conclusions are as follows: First,the urban-rural income gap is the result of multiple factors,including the credit allocation structure,financial marketization,education level,economic development level,industrialization level,and urbanization level.Second,the impact of financial marketization on the urban-rural income gap has slightly different effects in different regions.For the country and the western region,financial marketization has a significant role in promoting the income gap between urban and rural areas,which is in line with theoretical analysis.While the income gap between urban and rural areas is narrowed in the eastern and central regions,the central region is not significant.The main reasons are: the development of the eastern region is relatively early,the basic conditions in all aspects are good,the construction of the market environment is relatively complete,and the development of financial marketization has promoted the increase of rural income and reduced the income gap between urban and rural areas.While the basic conditions in the western region are backward and the comparative advantage is low.In the process of financial marketization,a large amount of resources flows from rural to urban areas,and urban areas develop faster than rural areas,exacerbating the urban-rural income gap.Third,credit allocation agencies have significantly contributed to the urban-rural income gap.However,contrary to theoretical analysis in the eastern region,the income gap between urban and rural areas is suppressed.Fourth,the joint role of the credit allocation structure and financial marketization has a significant role in promoting the urban-rural income gap.The western region is not significant,but its direction of action is in line with theoretical analysis.Based on the research,this paper proposes corresponding policy recommendations: First,increase rural credit support and promote the simultaneous development of rural credit product innovation;second,reduce market barriers and establish a multi-level credit service system;third,improve the credit system Promote the establishment of a sound rural financial eco-environment;Fourth,accelerate the advancement of financial marketization and implement the reform of regional differentiated financial marketization.The novelty of the thesis is reflected in the following: The existing literature mainly examines unilaterally the impact of the credit allocation structure on the urban-rural income gap and the impact of financial marketization on the urban-rural income gap.On the basis of this,the paper will unite the three to examine the role of credit allocation structure and financial marketization in China's urban-rural income gap,and demonstrates the necessity of financial marketization reform and the importance of rational allocation of credit resources to income gaps.It enriches the theory of income distribution and financial development and provides some reference for the study of the improvement of China's credit market system.