| The report of the 19 th National Congress of the CPC pointed out,"socialism with Chinese characteristics has entered a new era,and the main contradiction in our society has been transformed into a contradiction between the people’s growing needs for a better life and the development of inadequate imbalances.Today,the level of social productivity in our country has generally increased significantly.The more prominent problem is that the development is uneven and insufficient,which has become the main constraint to meet the people’s growing needs for a better life." Finance,as the core of modern economic operation,is the key factor to solve the problem of "unbalanced and insufficient" economic development in our country.How to solve the problem of "unbalanced and inadequate development" through financial development is of great significance to China’s economic development.Based on the existing research literature,this paper studies the regional differences in the impact of China’s financial development on urban-rural income gap through theoretical,current and empirical analysis.Firstly,it theoretically analyzes the ways in which financial development affects the urban-rural income gap.Secondly,it analyzes the current situation of China’s financial development and urban-rural income gap between 2005 and 2017 from the national and regional levels.Then,the article expresses China’s financial development with three indicators: financial development scale,financial development efficiency and rural financial activities,and uses dynamic panel threshold model and step-by-step estimation method to verify the threshold effect,poverty reduction effect and economic growth effect of financial development respectively,and compares the research results of various regions to analyze the non-equilibrium effects.The results show that financial development is still in its infancy in areas with backward economic development levels,such as the western and northeastern regions.The effect of economic growth and poverty alleviation on improving the economic situation of low-income people is weak,which has widened the urban-rural income gap.And this kind of pulling effect has not yet shown signs of diminishing(located in the left part of the inverted “U” curve and still has a large gap from the turning point).In the central region with moderate economic development,the impact of financial development on the urban-rural income gap tends to expand and then slow down(in the left part of the inverted “U” curve and close to the turning point).In the eastern region with a high level of economic development,due to the maturity of economic and social legal systems,financial development has exerted an indirect and direct effect on the urban-rural income gap through economic growth effects and poverty alleviation effects,and has already played a role in curbing the widening income gap between urban and rural areas.Role(presents a complete inverted “U”-shaped change).This paper analyzes that regions with faster economic development and better financial development will enter the stage of financial development to curb the widening income gap between urban and rural areas earlier.Finally,from the perspective of financial equilibrium development,combined with the empirical results,relevant policy recommendations are proposed to make China’s financial development better benefit the underdeveloped regions and serve to narrow the regional and urban-rural income gap. |
