The Study On Inclusive Financial Development To Welfare Differences Between Urban And Rural Residents In China

As the core of modern economy, finance is the economic development "Fountainhead ". Positive relationship between financial development and economic growth has been confirmed scholars at home and abroad. Impact the2008financial crisis on the economy is convinced of the view. In our country, the country is dedicated to the development of urban and rural areas, while there are dual financial problems, such as financial resources are concentrated to cities and to economically developed eastern regions, institutions and funds in rural areas and in the western region is revoked to the city and the eastern regions, rural areas in the western region is as a financial services desert, and the poor and other vulnerable groups have been excluded from the financial system, this will inevitably lead to the urban and rural economy, the income gap between urban and rural residents and the rich-poor divide is widening, severely restricts economic and social development. From the view of the relationship between economic development and financial analysis, financial backward areas, economic development inevitably fall behind, and finally inevitably affect people’s living standards; financial dual structure will lead to a vicious cycle with these circumstances. Through reflection on the financial difficulties and urban-rural dual structure, the paper argues that financial development should be inclusive of all people and regions, so that people whoever needs financial services enjoys equal access to financial services. Therefore, this paper introduces the concept of inclusive finance, and to study Impact of inclusive financial development on urban and rural residents in China.Based on the inclusive financial theory, the study presented a basic assumption that inclusive financial development can narrow the gap between urban and rural residents’ welfare. Basic research ideas of this paper are as follows:Based on the first chapter that describes the background and related research at home and abroad, the second chapter is mainly theoretical research as complementary, mainly on the definition of financial inclusion, and introduces the development of inclusive finance, then introduced successful development model of inclusive finance at home and abroad, this paper discover that inclusive financial development models can learn from each other in different countries.Then the third chapter introduces the status quo of inclusive financial development in China. After comparing the status quo of inclusive financial development at home and abroad, this chapter focuses on the current state of inclusive financial development in China. Then analyses various regions, provinces and cities’financial outlets and financial institutions deposits and loans by data. At last builds IFI and measures the level of inclusive financial development of provinces in eastern, central and western regions, and then analyses the results.Chapter IV through a comprehensive index, constructs an index measures differences between urban and rural residents’ welfare, and then measure the index of all provinces and cities. Based on the results of these two indexes measured,through the fixed effects model and the random effects model empirical analyzes the national level, the eastern region, central region and western region, the impact of inclusive financial development on urban and rural residents’ welfare difference. The empirical results show that inclusive financial development improves the welfare of residents in urban and rural, narrowing the gap between urban and rural residents’ welfare, but the impact of inclusive financial development on urban and rural residents’ welfare difference in different regional are different. Empirical results show that:in the east regions, the development of inclusive finance expands the urban and rural residents’ welfare difference; in the central region, the development of inclusive finance narrows the urban and rural residents’ welfare difference; in the western region, there is no significant relationship between inclusive financial development and the urban and rural residents’ welfare difference.Finally, includes the main conclusions, policy recommendations and outlook about this paper, some policy recommendations put forward:urban and rural development and narrow the income gap between urban and rural residents; vigorously promote the strategy of inclusive finance regional development in China, the implementation in the east, west and central areas carry out monetary policy; deepen inclusive financial system reform.