Research On The Effect Of County Inclusive Financial Development On The Farmers’ Increasing Income In China

In the 19 th session of national congress of the communist party of China,the rural revitalization strategy was put forward innovatively,in which the prosperity of farmers is the final goal of the strategy,and to promote the increase of farmers’ income is the key to this strategy.In fact,for a long time,the issue of farmers’ income has been a focus of the issue of agriculture,rural areas and farmers,and how to ensure the sustainable growth of farmers’ income by establishing a long-term mechanism to promote the growth of farmers’ income has been a long-standing economic problem in China.The unbalanced allocation of factor resources is the main reason that the problem of farmers’ income is hard to be solved for a long time,and the unbalanced allocation of financial resources is one of the important factors that affect farmers’ income.In essence,inclusive finance belongs to the category of factor allocation,whose importance comes from the fact that the allocation and flow of financial factors begin to pay attention to the low-income group.Therefore,in China,the development of inclusive finance has been highly valued by the government,aiming to win the poverty alleviation,increase farmers’ income and realize rural revitalization.In the development plan for promoting inclusive finance(2016-2020)issued by the state council in 2015,it was proposed that "by 2020,a system of inclusive financial services and guarantees suitable for the building of a moderately prosperous society in all respects should be established to effectively improve the possibility of financial services;The 2018 strategic plan for rural revitalization(2018-2022)calls for developing inclusive finance in rural areas,allocating more financial resources to key areas and weak links in rural economic and social development,and better meeting the diversified financial needs of rural revitalization.So,can the growth of farmers’ income be effectively promoted by the development of inclusive finance in county,and does the effect of inclusive finance have heterogeneity for rural residents of different income classes? More importantly,what is the influence mechanism of inclusive finance development to increase farmers’ income? In addition to providing important theoretical and practical basis for developing inclusive finance,promoting the increase of farmers’ income,and supporting the construction of rural revitalization,and having the important reference significance for avoiding the imbalance between thecurrent financial supply structure and the financial demand structure in the process of inclusive financial support for the construction of rural revitalization and improving the efficiency of financial resources optimal allocation,the answers to the above questions further enrich and improve the inclusive financial development theory and the rural financial theoretical system,and play an important theoretical role in deepening the reform of the financial system,improving the level of rural financial services,and improving the modern financial system with high adaptability,competitiveness and universality.In this context,this paper systematically discusses four major issues,such as "characteristics and influencing factors of financial exclusion of rural residents in the county area","whether the development of inclusive finance in the county area can promote the increase of farmers’ income","heterogeneous characteristics of the effect of rural income increase in the development of inclusive finance in the county area",and "influencing mechanism of the effect of rural income increase in the development of inclusive finance in the county area".The basic conclusions are as follows,at present,rural residents in county areas in China face not only the supply-oriented financial exclusion caused by insufficient supply of formal financial institutions,but also the demand-oriented financial exclusion caused by insufficient effective demand of their own.The main reason for demand-oriented financial exclusion is the lack of effective financial demand,which is caused by the lack of economic opportunities for farmers.For ordinary farmers,they are more likely to suffer from demand-oriented financial exclusion due to lack of economic opportunities.The effect of increasing farmers’ income is significant in the development of county inclusive finance.The development of inclusive finance in counties has a significant effect on increasing farmers’ income,an increase of1 percentage point in the IFI index will increase the per capita net income of local rural residents by 0.71%.The development of inclusive finance in county areas has a heterogeneous effect on the increase of farmers’ income,which has a greater impact on the high end of the distribution of rural per capita net income than on the middle and low end.The income increase effect of inclusive finance in counties is restricted by local economic opportunities and increases the financial supply of low-income groups.The expected income increase effect is restricted by the conditions of local economicopportunities.The development of inclusive finance in county can increase farmers’ income by promoting local economic development,that is,the intermediary effect of macroeconomic opportunities on the development of inclusive finance in county is significant.The following is the specific research content and structure of this paper:The first chapter is the introduction.In this chapter,the research background and significance of this paper are introduced,the concept of the core content of this paper is defined,a general arrangement and planning of research problems are made from research methods,research content,framework structure and other aspects,and the possible marginal contribution,innovation points and shortcomings of this paper are described.The second chapter is the theoretical review and literature review.In this chapter,the relevant theoretical basis is introduced,based on the internal evolution logic of inclusive finance,a systematic review is made from three aspects: the proposal of the concept of financial exclusion and inclusive finance,the factors that affect the development of inclusive finance and the social and economic effects of inclusive finance.The third chapter is the construction of county inclusive finance index system and the mechanism analysis of the influence on farmers’ income.In this chapter,the current situation and problems of the development of inclusive finance in China are analyzed,and some errors in the current development of inclusive finance are summarized and analyzed.From the perspective of increasing farmers’ income,the county inclusive financial index system is constructed from four dimensions: the permeability of financial institutions,the availability of financial services,the utility of financial services and the depth of digital financial use.In addition,the mechanism that the development of inclusive finance affects the growth of farmers’ income is analyzed from the theoretical level,which provides the theoretical basis for the empirical research in the following paper.The fourth chapter is the characteristics and influencing factors of rural financial exclusion.In this chapter,the micro survey data are used to investigate the characteristics and influencing factors of country financial exclusion in China,so that the specific typesof financial exclusion faced by micro individuals are identified,and the factors that affect the financial exclusion of farmers in counties are examined from the perspectives of the differentiation of farmers,the hierarchical comparison between poor counties and non poor counties,which paves the way for the further study of the mechanism that the development of inclusive finance in the county promotes the growth of farmers’ income.As far as the technical route of the study is concerned,this chapter is the logical starting point of the empirical analysis below.The fifth chapter is the effect of the development of inclusive finance in county area.In this chapter,a simple theoretical model is used to deduce the relationship between the development of inclusive finance and the increase of farmers’ income.At the same time,on the basis of theoretical analysis,the method of hierarchical comparison,quantile regression model of instrumental variables and spatial econometric model are used to explore the relationship between the development of the county inclusive finance and the increase of farmers’ income,and a series of robustness tests are carried out.The sixth chapter is the influence mechanism of the development of inclusive finance in county area.In this chapter,on the basis of the above research,the transmission mechanism of inclusive finance to promote farmers’ income growth from the perspective of economic opportunity is mainly analyzed,and the regulatory effect model and mediating effect model are used to investigate the regulatory effect and mediating effect of individual economic opportunity,macroeconomic opportunity and government economic opportunity on the development of inclusive finance to increase farmers’ income.The seventh chapter is the conclusion and enlightenment.This chapter summarizes the research conclusions of this paper,puts forward the policy Suggestions on promoting the development of inclusive finance to increase farmers’ income,and points out the possible research directions in the future based on the shortcomings of this paper.