An Analysis of Regional Differences between Financial Development and Rural-Urban Income Gap in China

Abstract

This paper mainly discusses the relationship between financial development and rural-urban income gap in eastern, middle and western regions in China during the period of 1980-2015, and analyzes the difference between the two relations in the three regions. The research results show that the scale and efficiency of the financial development in the whole country have enlarged the income gap between urban and rural areas. The impact of financial development scale on the rural-urban income gap in the eastern and western regions is significantly greater than that in the middle regions and the whole country, while the impact of financial development efficiency on the rural-urban income gap in the East and the whole country is significantly greater than in the Middle and Western regions.