The Influence of China Rural Financial Development on Urban-rural Income Gap

Most research show that the overall financial development in china has enlarged urban-rural income gap apparently,since reforming and opening up.At the same time,they have explained it from urban and rural finance unbalanced angle.This paper has analysed the relation between rural financial development and urban-rural income gap from the rural self layer surface of economic growth from 1978 to 2004.The result shows that rural financial development has enlarged urban-rural income gap.The reason is that the rural fund outflew and that irregular finance developed in non-standard.The realistic way is that we prevent rural fund outflow and offer more rural regular financial resources,standard irregular finance development,guard against rural financial risk.