Financial Exclusion Research On Peasants Of Rural Areas

Economic development in China has long been in the condition where EasternChina is more advanced to Western China, and urban economy is superior to ruraleconomy. This condition directly results in the backward financial development ofremote mountainous rural areas, especially that of ethnic districts in Central andWestern China. Problems such as a lack of financial network and shortage ofpractitioners exist in these areas, while peasant household in this area are faced withdifficulties to obtain financial resources due to the limitation of social environmentand their development capacity. That rural citizens are excluded from finance hindersthe improvement of rural life and mountain-area agriculture, negatively impacts theconstruction of regional socio-economic environment, and also threatens socialstability. Therefore, changing rural citizens’ status of financial exclusion inmountainous rural area should be an important measure to promote rural financialdevelopment and bridge the gap between regional development conditions.The paper adopts a method combing theoretical research and actual survey. First,the author analyzes the theory framework of financial exclusion, and gets anunderstanding into the present condition of financial exclusion in mountain-areavillage through firsthand data obtained from investigation. On the above basis, theauthor builds a model with which to analyze the main determinants affecting ruralcitizens’ status of financial exclusion. On the premise of understanding thecharacteristics of mountainous rural area and rural citizens, this paper illustrates theperformance, impact and reason of financial exclusion of rural citizens, using presenttheories and data, and proposes related measures to diminish the exclusion.First of all, the first chapter introduces related research of foreign and domesticscholars. Current research situation and future trend regarding the concept, origin,performance, treating measure are describes in the literature review. The secondchapter summarizes the related theories underlying financial exclusion, such asLocation Theory, Asymmetric Information Theory, and Social Exclusion Theory andetc. The third chapter discusses the performance of financial exclusion to mountainous rural areas in China and its adverse consequences, based on theory andpresent situation.Then the author takes a typical ethnic mountainousarea--Changyang Tujia Autonomous County--as example, studies the local financialexclusion situation with investigation and questionnaire survey, builds quantitativemodel to research the factor affecting local people acquiring financial product andservice, and sumerized the reason and determinants of financial exclusion of localrural citizens. In the next chapter, chapter four, the author summarizes the reasonwhy mountainous rural area citizens are inflicted with financial exclusion, in terms ofgeographical environment, policy orientation, financial demand and supply andfactors of rural household. At last, advisory policies are brought forward to diminishfinancial exclusion in three aspects, namely national government, financial institutionand mountainous rural area household.