Financial Development,Entrepreneurship and Urban-rural Inequality

Based on the panel data of prefecture-level city over 2000—2012, this article shows that financial development can reduce urban-rural inequality through entrepreneurship. Furthermore, the above relationship is related to the degree of marketization. Among the three major regions of China, it is the most remarkable in the east area where degree of marketization is the highest, the least remarkable in the western area where degree of marketization is the lowest.