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A study of the impact of financial agglomeration on the urban-rural income gap

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DOI: 10.23977/ferm.2023.061113 | Downloads: 36 | Views: 407

Author(s)

Xuelong Wang 1, Lili Zhu 2, Nana Li 3, Shunyu Wang 4, Shuhan Yang 5

Affiliation(s)

1 School of Intelligent Finance and Economics, Anhui Vocational and Technical College, Hefei, Anhui, China
2 School of Modern Business, Anhui Vocational and Technical College, Hefei, Anhui, China
3 School of Economics and Management, Anhui Jianzhu University, Hefei, Anhui, China
4 Anhui Qiyuan Venture Capital Co., Ltd, Hefei, Anhui, China
5 School of Public Administration, Anhui Vocational and Technical College, Hefei, Anhui, China

Corresponding Author

Lili Zhu

ABSTRACT

Financial agglomeration may become a new opportunity to narrow the urban-rural income gap. This paper takes 30 provinces in China as the research object from 2008 to 2020, uses location entropy to measure the level of financial agglomeration, and empirically analyzes the impact of the level of financial employment agglomeration on the urban-rural income gap from the current situation of financial employment agglomeration and urban-rural income gap. The study finds that: (1) Except for the central region, the level of financial employment agglomeration in the whole country and each region shows a generally upward trend. (2) All regions have experienced a long-term and sustained decline in the urban-rural income gap during the period under examination, but the problem of urban-rural income gap remains serious. (3) From the empirical test, at the national level, the increase in the level of financial employment agglomeration can effectively crack the urban-rural income gap problem. However, at the regional level, the role of financial employment agglomeration in China on the urban-rural income gap varies greatly among regions.

KEYWORDS

Financial employment agglomeration; urban-rural income gap; locational entropy

CITE THIS PAPER

Xuelong Wang, Lili Zhu, Nana Li, Shunyu Wang, Shuhan Yang, A study of the impact of financial agglomeration on the urban-rural income gap. Financial Engineering and Risk Management (2023) Vol. 6: 92-101. DOI: http://dx.doi.org/10.23977/ferm.2023.061113.

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