The Research On Factors Affecting Chinese Rural Financial Exclusion

Rural financial exclusion is not only a worldwide problem, but also a dynamic, multi-dimensional, comprehensive research questions, reflecting the "unfair " and " inefficiency " allocation of financial resources, rural financial exclusion is a subset of social exclusion. The situation of Financial exclusion in rural areas is serious, which caused by the financial exclusion "Matthew Effect", leading to capital flight, economically backward, forming financial hole in rural areas, and leading the gap between rich and poor residents, and urban-rural areas dual structure becoming a serious problem, has become a major bottleneck of China’s rural economic development. Since2004, Document NO.l of the Central Government has pay attention to rural financial problems. Document NO.1of the Central Government of2012is regulate clearly that we should make efforts to enhance policy support to rural finance, to develop a diversified rural financial institutions, to encourage private capital to take part to the field of financial services in rural areas, to support commercial banks to set up rural village banks in the central and western regions, thus, we can see that the determination of our Government make efforts to solve the problem of rural financial exclusion. Research and alleviate rural financial exclusion is not only conducive to improve the financial system, and promote economic health, sustainable development, but also to provide a new theoretical perspective, which can break the countryside problems, peasants problems, agriculture problems, ease of wealth gap, unbalanced urban and rural development and other issues.This paper describes the background of financial exclusion, the meaning, types and Effects of financial exclusion, analyzes the reasons of Chinese rural finance and rural financial exclusion deeply and explore the formation of rural financial exclusion, and builds on the theoretical analysis of the factors affecting financial exclusion model from the perspective of financial exclusion supply, demand and supply&demand, it provides theoretical support for the research of this paper. Then, based on the theoretical analysis model-Circle Hotelling model, builds multiple regression model about the impact of rural financial exclusion problem, based on the2010central six provinces667counties (districts) economic data, gives a theoretical and empirical analysis of what factors to the extent leads to rural financial exclusion problems, found that GDP in the county, the total number of county business, the total number of county individual businesses, rural population, the urban population and government regulation have significant positive impact on the number of financial institutions outlets, financial market structure and the first industry output have significantly negative impact on the number of financial institutions outlets in the county.Then, this paper using Quantile regression of robustness test, after that, using regression analysis based on decomposition to quantitative measure of the contribution of each factor on rural financial exclusion. Found that the level of county economic gap explains about33%of the gap in the rural financial exclusion by the decomposition of the regression equation analysis. Urbanization factors have been shown to play an irreplaceable role in cracking the problem of rural financial exclusion. If the urbanization levels of each county (district) are equal, then the gap of the rural financial repression will shrink about20%. It is also the key to crack the problem of rural financial exclusion that building a more competitive rural financial market and trying to achieve faster growth of farmers’ income. Thus for the policy mix boxing fight in the future in our country, it requires distinguishing the priorities as well as taking the measure to local conditions.