The Correlation Analysis Between Finance Agglomeration And Urbanrural Income Gap In China Prefecture

Since 1978,China's economy has been developing rapidly and continuously.At the same time,the gap between the rich and the poor in urban and rural areas is widening.The income ratio of urban and rural residents reached 3.3 times in 2009.The excessive income gap between urban and rural areas has had many adverse effects on the sustained and rapid economic growth of China and the construction of a harmonious society.To narrow the gap between urban and rural areas and realize the coordinated development of urban and rural areas and social equity has become one of the key issues of overall economic and social development in China.As we all know,finance is an important tool to adjust the redistribution of social income,which has an important impact on the income gap between urban and rural residents.However,there are few related studies on the role of financial agglomeration in regulating the income gap between urban and rural areas in China.Based on the spatial panel data of 343 prefecture-level cities in China from 2004 to 2015,this paper first measures the financial agglomeration and the income gap between urban and rural areas in China,and then draws the 10-year distribution map of various indicators by using Arcgis software to analyze their spatial and temporal trends.Finally,using MATLAB software,using OLS model and spatial Durbin model to empirically analyze the correlation between financial agglomeration and urban-rural income ratio.Two conclusions are drawn:Descriptive statistical analysis shows that:(1)China's urban-rural income gap in 2007 as the dividing line,the overall experience first increased and then decreased.(2)Spatially,there are three parts of east,West and west,which are divided by northeast-southwest direction.On the whole,the income gap between urban and rural areas in the eastern region is the smallest,followed by the central region and the largest in the western region.(3)According to Arcgis cluster map,the financial industry in the eastern and coastal areas of China has obvious diffusion effect,that is,the central area drives the financial development level of the surrounding areas;while the central area in the inland and central and western regions has obvious polarization effect,and the financial development in the central area is at the cost of absorbing the financial development of the surrounding areas.(4)The income gap between urban and rural areas in China also presents a situation of large overall gap between the central and western regions and small income gap between urban and rural areas in the eastern coastal areas.The empirical results show that:(1)the level of banking agglomeration is negatively correlated with the income gap between urban and rural areas,and its impact is up to 20.9%.(2)The agglomeration level of insurance industry is negatively correlated with the income gap between urban and rural areas,but it has not passed the significant test.It is considered that the direct improvement of insurance level has little effect on narrowing the income gap between urban and rural areas.(3)The correlation coefficients between fixed model and stochastic model under direct effect are negative,but none of them pass the significance test.The correlation coefficients obtained by random models in indirect effects only pass the 10% significance test.It can be concluded that the increase of local financial employment density has little effect on the income gap between urban and rural areas.However,the increase of financial employment density in the surrounding areas has widened the income gap between urban and rural areas.(4)Under the indirect effect of the number of mobile phones per capita,the coefficient is negative,and it passes the 5% significance test.The coefficients of fiscal expenditure under direct and indirect effects are negative,which pass the 10% significance test.We can conclude that improving the level of information technology and expanding financial expenditure are significantly conducive to narrowing the income gap between urban and rural areas.The policy suggestions are as follows:(1)vigorously developing the economic level is still the most important and fundamental means to solve the income gap between urban and rural areas.(2)Because of the difference between the economic development level of eastern,western and central China and the income gap between urban and rural areas,the local "financial strategy" should be formulated according to local conditions.The development of financial industry in the eastern region is conducive to narrowing the income gap between urban and rural areas,while the central and western regions should take local natural endowments as the basis and take measures to improve their economic level to narrow the income gap between urban and rural areas.(3)Vigorously developing information technology,popularizing 5G technology,improving the level of construction of optical fiber networks in various regions,and improving the level of information technology in each region to reduce information costs will help narrow the income gap between urban and rural areas.(4)Increasing financial expenditure is also one of the means to narrow the income gap between urban and rural areas.The income gap between urban and rural areas can be narrowed by improving the infrastructure level in backward areas and ensuring the medical and educational welfare in backward areas.