An empirical study on financial development and urban-rural income disparity in Tianjin

From the view of financial development, the relations between financial development and urban-rural income gap in Tianjin from 1980 to 2008 were cointegration analyzed based on VAR model. Results indicated that a long-run equilibrium relation exists between financial development and urban-rural income gap in Tianjin. A positive correlation lies between financial development dimension, while a negative correlation exists between financial development efficiency and urban-rural income gap. At last, the result of empirical research was discussed and the policy implication was presented.