Construction and harmonious development of urban-rural com-paring fi nancial systems based on comparative advantages theory

There exist differences between urban-rural f inancial systems. Generally, the development of urban f inan-cial industry has absolute advantages compared with rural f inancial industry. According to the Matthew Effect, the f inancial resources will ? ow into cities for higher benefi t, so rural areas are unable to obtain absolute advantages. However, relative advantage theory of the comparative advantage theory provides an important way to observe respective advantage of both city and country. Therefore, there are comparative advantages for the development of fi nancial industry in both urban and rural areas. The respective comparative advantages of urban-rural fi nancial systems will supply greater effi ciency than that in current dual pattern condition. Closely connected with China's f inancial development and reform and the fact of the recreation of urban-rural fi nancial system, this paper tries to explain the comparative advantage of the urban-rural f inancial systems. The analysis of the comparative advantage between urban and rural f inance is the clue for the boundary between urban-rural f inancial systems. This paper ana-lyzes the current situation of urban-rural f inancial system. Then it proposes some views and suggestions on how to develop and maintain these two systems as well as how to promote their coordinative development.

There exist diferences between urban-rural financial systems,Generally,the development of unban financial industry has absolute advanages compared with rural financial industry.According to the Matthew Effect,the financial resources will flow into cities for higher benefit ,so rural areas are unable to obtain absolute advantages However,relative advantage theory of the comparative advantage theory of the comparative advantage theory provides an lmportant way to observe res[ectove advamtage of both city and country.Therefore,there are comparative advantages for the development of financial industry in both urban and rural areas.The respective comparative advantages of urban-rural financial systems will supply greater efficiency than that in current dual puttern condition.Closely connected with China＇s financial development and reform and the fact of recreation of urban-rural financial system,this paper tries to explain the comparative advantage of the urban-rural financial systems.The anaalysis of the comparative advantage between urban and rural finance is the clue for the bonndary between urban-rural financial systems.This paper analyzes the current situration of urban-rural financial system.Then it proposes some views and suggestions on how to develop and maintain these two systemw as well as how to promote their coordinative development.