Research On The Impact Of Financial Structure On The Income Distribution Gap Between Urban And Rural Residents

Over the past 40 years of reform and opening up,China's institutional transformation from a planned economy to a socialist market economy has promoted rapid economic growth and brought about the rising of the national income.At the same time as income has increased,the income distribution gap has also widened.According to the National Bureau of Statistics,China's Gini coefficient has been above the international standard warning line of 0.4 after reaching the peak of 0.491 in 2008.The report of the 19 th CPC National Congress clearly stated that "it is necessary to promote a more rational and orderly income distribution,we must broaden the channels of residents' labor income and property income,and narrow the gap in income distribution." To narrow the income distribution gap,we must figure out the reasons for the widening income distribution gap.Scholars have found that finance,including the size and structure of finance,are important reason for the income gap.Different types of financial structures have different capabilities in collecting and processing information,screening potential customers,allocating funds,and providing financial services types and quality,and may influence income gaps through different channels.Based on the theory of optimal financial structure,this paper studies the impact of financial structure on the income distribution gap between urban and rural residengts.This paper defines the financial structure from two angles.The first is the financing structure.The ratio of the total stock market value to the loan balance of the banking financial institutions is used to examine the relative importance of financial markets and financial intermediaries in the financial system.The second is the banking structure.It uses the ratio of the assets of small and medium-sized banks to the total assets of banking-type financial institutions to examine the role of the proportion of small and medium-sized banks in the banking industry.Using China's2005-2016 provincial panel data,using three methods of fixed-effects model estimation,differential GMM and system GMM to empirically estimate the impact of different financial structures on the income distribution gap between urban and rural residents.The results of the discussion were divided into east,central,western,and northeast regions,and the role channels were verified.The empirical results show that in addition to the northeast region,further development of the stock market in the other three regions,the promotion of direct financing will alleviate the income gap between urban and rural residents,and the central and western mitigation is stronger than the eastern region.Moreover,the central and western regions have stronger mitigation effects than the eastern region,and mainly through the intermediary role of promoting economic growth.Further promoting the development of small and medium-sized banks is conducive to alleviating the income gap between urban and rural residents,but its intermediary role in promoting the development of small and medium-sized enterprises is not very smooth.According to the empirical results,this paper puts forward the corresponding policy recommendations.Firstly,optimizing the financial system structure.It is necessary to shift the focus of financial development from large-scale to optimizingstructure,accelerating the structural reform of the financial supply side,focusing on the adjustment and optimization of the financial system structure,optimizing the financing structure and financial institution system,market system and product system.It plays a positive role in alleviating the income gap between urban and rural residents through the optimization of financial structure.Second,accelerating the development of financial markets.Focus on improving the proportion of capital market financing in the entire financial system,strengthening and expanding the Chinese capital market,and reducing dependence on bank credit.Third,optimizing the financial institution system.It is necessary to build a multi-level,wide-coverage and differentiated banking system,correct the development concept,increase the number of small and medium-sized financial institutions and the proportion of business,and improve small and micro enterprises and “ three rural ” financial services.