Research On The Regional Difference Of Rural Financial Exclusion Affecting Urban-Rural Income GAP

Since the reform and opening up,the economic of our country has achieved a great leap.Although the rapid economic growth has brought the rising level of the overall income of our country,the income gap between urban and rural is also increasing.All the time,finance plays an important role in economic and social development.Therefore,to improve the income level of rural residents and narrow the urban-rural income gap is naturally inseparable from the support of rural financial development.However,taking a close look at development of rural finance in China,the rural financial institutions have been developing difficultly and tortuous under the comprehensive function of the government's policies and market mechanisms.Compared with cities,rural financial services,whether they are in the provision of facilities or loan rationing,are flawed or inadequate,that is,there is a phenomenon of financial exclusion.The irrational distribution of these financial resources will seriously affect the level of rural economic development,which will in turn affect the growth of farmers' income,and further widen the income gap between urban and rural areas.Therefore,from the perspective of financial exclusion,it is necessary to pay attention to how the degree of rural financial exclusion in different regions affects the urban-rural income gap and reveal the long-term dynamic process between them,which has certain practical significance for alleviating the long-term urban-rural income gap in different regions of China.This article explains the reasons for the formation of urban-rural income gap in China from the perspective of the development of rural finance in China.Based on relevant theories and literature,it explores the mechanism of the impact of financial exclusion on urban-rural income gap;At the same time,in conjunction with relevant statistical data,we have collected panel data of China's 30 provinces from 2002 to 2016.From the perspective of financial supply,we use the Theil index and financial exclusion index to measure the income gap between rural and urban areas in different regions and the degree of rural financial exclusion,and the change trend of rural financial exclusion and urban and rural income gap in different areas is analyzed;Finally,a panel vector auto regressive(PVAR)model is used for empirical analysis,which more specifically portrayed the dynamic impact of rural financial exclusion in different regions on the urban-rural income gap.The research results show that the rural exclusion phenomenon restricts the improvement of the rural economy level by affecting the amount of rural capital and the direction of rural capital allocation.Finally,the growth of farmers' income is slow,and the income of urban residents keeps widening the gap.The empirical results show that the degree of rural financial exclusion in all regions has a significant positive correlation with the urban-rural income gap,and the urban-rural income gap itself has a significant inertia,but the impact of the urban-rural income gap in the central and western regions on itself is significantly lower than that of the national andeastern regions;At the same time,there are obvious regional differences in the extent of urban-rural income gap response to the impact of rural financial exclusion.The degree of rural financial exclusion in the eastern and central regions has a more permanent impact on the urban-rural income gap,and the impact of the fiscal expenditure tends to be more lasting in the western region.