Research on the effect on urban-rural income difference brought by rural financial development

Based on the mechanism of urban-rural income gap which influences financial development in rural area,this article empirically analyzes the relationship between rural financial development and urban-rural income gap in Chongqing in the period from 1997 to 2006.The result shows that rural financial development has enlarged urban-rural income gap in Chongqing.The reasons are of the rural fund outflow and the low efficiency of rural financial service.Finally,some policy suggestions are put forward.