The Reseaech Of Financial Exclusion Influencial Factors In Jiangsu Rural Area

Under the market-oriented economy, most of the financial institutions seek to the profit maximization; allocating the limited financial resources to the area where the return is high to obtain more profit.merging of their business sites and branch offices in rural areas gradually. The financial institutions are more cautious to choice their service area, especially after the financial crisis in1990s. They choice the area where the risk is small and the return is high. At the same time, they merging of a large number of their branches in rural areas. These actions caused the absence of financial services and even blank, increasingly serious financial exclusion phenomenon the rural areas, and also weaken the promoting effect of the financial development to economic growth. So, further study in the influence factors of financial exclusion will have a positive sense in breaking the financial exclusion, promoting rural economic and financial development and promoting the building of a harmonious society. And it also benefit to the rural financial reform and the innovation of the rural financial system.Firstly, the paper summarizes the research of financial exclusion at home and abroad, and makes a comment of it. Then the paper summarizes the related of financial exclusion, analysis the connotation, measure index and influential factors of it. The paper also summarizes the theory of financial inclusion. Based on these, the article divides financial exclusion into four dimensions, has a theoretical analysis on influential factors of financial exclusion and determines the econometric model and related variables. After that, the paper has a statistical analysis of the financial exclusion status in Jiangsu rural area from the availability, the depth, the usage and the affordability of financial service. Based on this, the paper has an econometric analysis on the influential factors of financial exclusion in Jiangsu province, by using panel data of50counties (cities) in Jiangsu from2006to2010. Finally, based on the conclusion of empirical analysis, the paper put forward policy suggestions on breaking financial exclusion.Based on the empirical analysis, the paper gets the following conclusions. First, with the development of the new rural financial institutions, the cooperatives and the new rural financial institutions replace the state-owned banks become the most important financial institutions type in rural areas and they also become the main strength in providing loans in rural areas. Second, the usage and the affordability of financial service in northern Jiangsu are low, the financial exclusion is relatively serious. The degree of financial exclusion is easing while seeing from the change trend. That means the credit technology in northern Jiangsu such as sunshine credit has effect in breaking financial exclusion. Third, regional economic development level, income level and employment level have significant positive influence on the availability and usage of financial service. Commercial environment also has significant positive influence on the availability and usage of financial service. At last, infrastructure has significant positive influence on the availability and usage of financial service. Based on the conclusion of empirical research, the paper puts forward policy suggestions from four aspects, that are optimizing Commercial environment in rural areas, completing infrastructure in rural areas, promoting the development of new type of rural financial institutions and constructing financial system of financial inclusion.