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.
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