An Empirical Analysis Of The Influence Of Rural Finance Development On Urban Rural Income Gap In Hubei Province

In recent years,the gap between the rich and the poor has become a major concern of the society and is one of the problems that accompany the development of China's economy.When the planned economy began to gradually transition to a market economy,the lack of reform mechanisms in some regions,and the huge differences in natural conditions between different regions have led to the phenomenon of disparity between the rich and the poor.The disparity between the rich and the poor is mainly reflected in the large urban-rural income gap.Hubei Province has a unique geographical location and is located in the hinterland of Central China,and is one of the largest agricultural provinces in China.The proportion of the rural population has been declining for the last ten years.By the end of 2016,the rural population of the province was 25,651,100 people,which accounted for 41.90% of the total population of the province.However,the per capita disposable income of rural residents in Hubei Province was only 1,2725.0 yuan,with the national average.The level is flat and there is a clear distance compared with other developed regions such as the coast.Due to the significant difference in location factors among provinces,the level of economic development among regions varie.When formulating economic development policies,it is necessary to combine local realities.Hubei Province is no exception.The establishment of a rural financial system in Hubei Province should meet the basic needs of local production and living.In the actual establishment process,various problems will be encountered.How to solve these problems well and promote the development of rural finance will further reduce the income gap between urban and rural areas.In the face of the country's strategic opportunity to implement the rise of Central China,Hubei Province has always been the leader and the relevant policies are to provide guidance to other provinces around it.This paper uses a combination of theoretical analysis and empirical analysis to explore the impact of rural finance in Hubei Province on the urban-rural income gap.First of all,it combs the relevant theories of rural financial development and urban-rural income gap,focusing on the impact mechanism existing between the two,and provides guidance for selecting specific indicators for subsequent empirical analysis.Secondly,after analyzing the rural financial development and urban-rural income gap in Hubei Province,it is concluded that the financial scale in rural areas needs to be improved,the income gap between urban and rural areas is increasing,and the relative ratio between urban and rural incomes is declining.Again in the empirical analysis section,the description of ruralfinancial development will be divided into three dimensions : scale,efficiency,and structure.Relevant indicators will be selected,rural financial development will be taken as an independent variable,and the urban–rural income gap will be the dependent variable.Multivariate linear regression models will be used to analyze rural areas.The impact of financial development on the income gap between urban and rural areas shows that the scale and efficiency of rural financial development are positively correlated with the urban-rural income gap.The rural financial development structure is negatively correlated with the urban-rural income gap,and the reasons are analyzed.Finally,in order to narrow the urban-rural income gap,this paper proposes to improve the construction of the rural financial system in Hubei Province,improve the rural financial flow mechanism,and reduce rural capital outflows.