The Relationship of Financial Development, Urbanization and Urban-Rural Income Gap: An Empirical Research Based on Provincial Panel Data in China
1 School of Economics, Sichuan University, 610064 Chengdu Sichuan, China
2 School of Business, Sichuan University, 610064 Chengdu Sichuan, China
Financial development and the urbanization are important influence factors of the urban-rural income gap, and financial development can be measured by three main indexes which are financial scale, financial activities and financial efficiency. The financial development scale of China has obviously widened the urban-rural income gap. But rural financial activities have obvious effect on increasing farmers’ income, and the improvement of financial efficiency is helpful for narrowing the urban-rural income gap. The Kuznets effect between economic development and the urban-rural income gap has regional diversity. Besides that, the improvement of urbanization is also helpful for shorting the urban-rural income gap.
Key words: financial development / the urbanization / the urban-rural income gap
© Owned by the authors, published by EDP Sciences, 2014
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