The Influence Of Financial Agglomeration On Urban-rural Income Gap In Northwest Of China

Since the reform and opening up,China's economic aggregate has been increasing,the financial market and financial system have been constantly improved,and the flow of financial resources has promoted the high concentration of financial resources and financial activities in a central region or city.With the continuous expansion of economic scale,China's resident income has also undergone great changes,but behind the economic aggregate hidden urban and rural income gap problem is worrying.Narrowing the urban-rural income gap is an urgent and urgent choice in the course of China's current economic and social development,and the agglomeration of financial resources affects the urban-rural income gap through direct and indirect transmission effect,providing theoretical and practical basis for the adoption of financial policies to narrow the urban-rural gap.Based on the method of location entropy index,this paper constructs the bank agglomeration index,securities agglomeration index,insurance agglomeration index and financial employment agglomeration index in northwest China to analyze the characteristics of financial agglomeration in northwest China.At the same time,the urban-rural income ratio is constructed to analyze the characteristics of the urban-rural income gap in northwest China.This paper firstly constructs a nonlinear model of the influence of financial agglomeration on urban-rural income gap and testsit.It is found that the influence of financial agglomeration on urban-rural income gap in northwest China is obviously nonlinear.Second,because of the financial agglomeration theory found on the threshold of the influences the income gap between urban and rural areas,this paper constructed panel threshold model and test,the article selected financial agglomeration as threshold variable,to study the northwest regional financial agglomeration threshold effect of the income gap between urban and rural areas,respectively,for a single threshold test and double threshold.The results show that the single threshold in northwest China has passed the test at the significance level of 5%.Therefore,the financial agglomeration in northwest China has a single threshold to the urban-rural income gap,showing a significant nonlinear change.The financial agglomeration in northwest China presents an inverted U shape to the urban-rural income gap.When the financial agglomeration level is lower than 0.7823,the financial agglomeration enlarges the urban-rural income gap.When the level of financial agglomeration is higher than0.7823,it Narrows the urban-rural income gap.Finally,based on the conclusions and inspirations of the empirical analysis,this paper puts forward relevant Suggestions on the flow of financial resources,the coordinated development of regional economy,the strengthening of regional financial cooperation and the improvement of trade structure.