Financial Development, Rural Resident Income Growth and Urbanization: Evidence for the China
Mr. Liu Zhaoying, Prof. Dr. Zhao Lifen

Abstract
Urbanization is an important and revolutionary project in the economic transition of China. This paper focuses on the dynamic relationship of financial development and urbanization, and the income of rural residents is regarded as an intermediate variable. While the literature on this topic is reviewed, a model of financial development, income of rural residents and urbanization in China is presented. Then an empirical analysis is conducted to validate the model above, and it is found that financial development could increase the income of rural residents and facilitate the urbanization in China.

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