The Research To The Influential Factors Of China’s Rural Financial Exclusion

Under the rapid development of rural economy, the financial demand of farmersturns out to be multi-level, diversified and rising sharply. That profit-driveninstitutions have been merging a large number of streamline outlets in rural areascauses the absence in rural financial market. Obviously, farmers still have to face theserious financial exclusion. Duality of urban and rural development characteristics,the characters of agricultural production and poor rural financial ecologicalenvironment, even farmers’ own special credit habits are the reasons why farmerscannot enjoy the formal financial services as their wishes. Financial exclusion hasbecome to reduce the vigor of rural economy, the barrier of rural economydevelopment and the reason of imbalance between urban and rural areas. Since2004,the government issues first policy document11years in a row to show its highattention to the problems of agriculture, rural areas and farmers and emphasis on theconstruction of rural financial service system. This article takes the commonphenomenon of rural financial exclusion as a starting point, analyzes rural financialexclusion situation, and explores the underlying causes influencing the formation offinancial exclusion.First of all, this article stars from the research of financial exclusion theory andanalyzes present situation of rural financial exclusion from microscopic andmacroscopic perspectives. Based on the relevant rural financial banking data,Imeasured the provincial synthetic evaluation index on this paper to reflect the overalllevel of rural financial exclusion and regional differences more intuitively.Secondly, as to the analysis the formation mechanism of the rural financialexclusion, this article first discusses the reason of rural financial exclusion which isbased on the theory of supply and demand, including why financial service supplysystem merging a large number of streamline outlets in rural areas, and how thefarmers make their financial decisions and take themselves out of the range ofmainstream financial systems. On the basis of theoretical analysis, this article selectedthe related data from2007to2011to construct panel data of31provinces, andanalyze the influence factors of China’s rural financial exclusion with the fixed effectmodel. Finally, based on all the research results above, this article found that ruralfinancial foundation is weak, the coverage of the financial institution is narrow,coupled with the capital outflow, which lead to the serious financial exclusion andregional difference in rural areas, and even increased from2007to2011. Our studyfound that rural population sex ratio, rural population density, residents savings,infrastructure level, folk loan scale, the employment situation, the depth of thefinancial services and financial development use degrees were significantly affectrural financial exclusion, thus put forward the relevant policy recommendations toalleviate financial exclusion.