Research On Innovative Development Of Financial Inclusion Under Unbalanced Conditions

The main social contradictions in China are transformed into the contradiction between people's growing need for a better life and unbalanced and inadequate development.The imbalance and inadequacy of development exist in all areas of China's economy and society.There is also a problem of unbalanced and inadequate development of financial inclusion.Financial inclusion is a further extension of micro-credit and micro-finance.China has implemented the financial inclusion policy for a long time and has achieved some achievements.However,the implementation of financial inclusion meets problems of unbalanced development and sustainable development.Financial institutions practise the concept of financial inclusion,which provides financial products and services for all sectors of society and mainly considers that providing financial products and services for vulnerable groups.Financial institutions do not consider whether vulnerable groups can enhance their own development ability through financial inclusion services.Unbalanced development is closely related to sustainable development.If financial inclusion is still running on the original track and carrying out business according to the original concept,its unbalanced and inadequate development will still exist and it will not be able to effectively support the rural revitalization strategy and financial inclusion is not sustainable.Therefore,it is necessary to study the unbalanced development of financial inclusion in China and combine financial inclusion with transformation and upgrading of China and the rural revitalization strategy with innovative ideas and methods.This research analyzes the phenomenon and essence of the unbalanced development of financial inclusion among regions and finds out the solution with innovative ideas.Firstly,the structural imbalance of China's financial inclusion development is analyzed.Then,from the perspective of spatial spillover effect and risk spillover effect,the inadequacy of the spillover effect of China's financial inclusion development is studied.The reason for the imbalance of financial inclusion development is explained.On this basis,the research puts forward a new development mode of financial inclusion which is exploitation-oriented financial inclusion and analyzes the necessity of implementing exploitation-oriented financial inclusion.This research analyzes the necessity and goal of developing exploitation-oriented financialinclusion and studies the implementation path of exploitation-oriented financial inclusion to support the rural revitalization strategy.Through the analysis of financial inclusion index,Gini coefficient of financial inclusion and the structure concentration of financial inclusion,this research demonstrates that there is imbalance in the development of financial inclusion among regions in China.By building financial inclusion index to measure the development level of China's financial inclusion,the results show that although the overall level of China's financial inclusion has a certain development,the imbalance of the development of financial inclusion between regions still exists.The development level of financial inclusion among regions in China is decreasing from east to west.The development level of financial inclusion in the eastern region is better than that in the central and western regions.In terms of dimensions,the development of financial inclusion in three regions shows certain differences.In the penetration dimension,the eastern region develops better,while the western region develops weaker.In the availability dimension,the development paths of the central and western regions are similar,the development of the availability dimension in the eastern region is better than that in the central and western regions.In the usage dimension,the development of the usage dimension in the central region is weaker than that in the western region.The structure concentration calculated by the Gini coefficient of financial inclusion can reflect whether the development structure of financial inclusion is balanced and reasonable.If the structural concentration is high,it shows that the development of financial inclusion in China is unbalanced.There may be a region that only pays attention to the penetration of the financial service and ignores the availability of the financial service.Meanwhile,another region may only be focused on the availability of the financial service,ignoring the penetration of the financial service.From the calculation results,we can see that the structure of financial inclusion in China is unbalanced and the development of penetration dimension in the regional financial inclusion development is most prominent.This research makes an empirical analysis of the development structure of financial inclusion in China by using the dynamic shift share model.The results show that the penetration dimension is at a structural disadvantage.This research applies improved Hotelling model to derive necessary conditions for spatial spillover effects to occur between regions as a result of financial inclusion.Results show that the price of financial inclusion products and services is not only related to their own costs,but also to the unit distance cost between regions.Takingfinancial inclusion in the central region as the analysis object,whether the western and eastern regions will have spatial spillover effects on the development of financial inclusion in the central region depends on the relative price of financial inclusion products and unit distance cost between regions.When the price is relatively lower and the unit distance cost is smaller,the spacial spillover effect between regions is more obvious.When there is a high profit associated with the financial inclusion services obtained from the spatial spillover effect in the eastern or western regions,the spatial spillover effect will be greater,and it will be easier for financial inclusion to penetrate the central region.This research uses a spatial model to evaluate if the development of financial inclusion in the eastern and western regions produces spatial spillover effects for the central region.Results show that in the penetration and usage dimension of financial inclusion,the eastern and western regions have negative spatial spillover effects on the central region.In the availability dimension of financial inclusion,the eastern and western regions have positive spatial spillover effects on the central region.It shows that the spatial spillover effect of financial inclusion between regions in China is not fully developed and the positive synergy and linkage effect of the financial inclusion development between regions has not been fully formed,which leads to the imbalance of the development of financial inclusion between regions.When studying the risk spillover effect of financial inclusion development from the perspective of Internet finance,this research finds that there is a positive and asymmetric two-way risk transmission between Internet finance and banking industry.The risk spillover effect of banking on Internet finance is far greater than that of Internet Finance on banking.When the Internet finance fluctuates greatly,the loss of the bank's return will increase by 0.26% and the risk contribution of the Internet finance to the banking will be 3.68%.On the contrary,when the banking fluctuates greatly,the loss of Internet finance's return will increase by 0.88% and the risk contribution of banking to the Internet finance will be as high as 16.06%.Internet finance is conducive to the financial inclusion development,but its insufficient development may also lead to the unbalanced development of financial inclusion due to the exposure of risks.The necessity of developing exploitation-oriented financial inclusion is demonstrated and the path of exploitation-oriented financial inclusion support for rural revitalization is put forward.Exploitation-oriented financial inclusion pays attention to "hematopoietic" mechanism.Developing exploitation-oriented financialinclusion is not only helpful to solve the imbalance and insufficiency of financial inclusion development,but also helpful to promote financial inclusion to high-quality development.Exploitation-oriented financial inclusion pays attention to the combination with the national strategy and supporting the rural revitalization is the primary goal of the exploitation-oriented financial inclusion.Through activating the endogenous power of financial consumption of vulnerable groups and changing their financing and production methods,exploitation-oriented financial inclusion links organically the production of vulnerable groups with modern industries as a whole and improves the development ability of vulnerable groups from the endogenous perspective.The vulnerable groups strengthen their own "hematopoietic" mechanism with the help of exploitation-oriented financial inclusion finally.Based on the concept of exploitation-oriented financial inclusion,we will help the poor in rural areas and optimize the investment and financing of farmers.Through analysis,we can see that the output per capita on the balanced growth path is affected by financial education.We can use the exploitation-oriented financial business to give farmers more financial literacy training and spread the necessary concept of agricultural industrialization and other financial knowledge.So that the farmers can consciously participate in the labor division and cooperation of the agricultural industry chain.At the same time,through improving the ability of farmers to use financial facilities and products and especially improving the ability of farmers to use financial tools reasonably for risk management,it can ultimately maintain farmers' optimistic attitude towards agricultural development and improve farmers' agricultural investment level and efficiency.The relationship between agricultural investment between agricultural enterprises and farmers is discussed by using the method of iterated elimination of Nash equilibrium.The results show that the willingness of agricultural enterprises to invest in agriculture affects farmers.Farmers will be affected by external environment to invest in agriculture.We can consider to use exploitation-oriented financial inclusion to support farmers to integrate into the industrial chain of agriculture.By integrating farmers into the modern industrial chain,exploitation-oriented financial inclusion supports farmers and agricultural core enterprises to carry out the supply chain.So that farmers and agricultural core enterprises can form a community with a shared future.In the future,the innovation of rural poverty alleviation can start from encouraging financial institutions to launch financial services and products related to exploitation-oriented financial inclusion based on labor division and cooperation.In order to effectively alleviate poverty,through the exploitation-oriented financial inclusion,we can correct the target deviation of poverty alleviation policy and carry out precise positioning for the poor and poor areas.From three aspects,this research puts forward working thought to promote the development of exploitation-oriented financial inclusion.This research holds that we should implement the development strategy of exploitation-oriented financial inclusion based on labor division and cooperation.We also establish a nationwide exploitation-oriented financial inclusion system and strengthen the infrastructure construction of exploitation-oriented financial inclusion.