Agglomeration Of Chinese Financial Exclusion And Regional Development

As China’s economy continues to develop, due to the lack of financial resources in underdeveloped areas resulted from urban-rural dual structure of the financial, combined with other geographical, social, cultural factors, for some parts of China, the extent of the financial exclusion is continuing deepening. Residents at those areas are excluded from the normally acquisition of the corresponding financial services. From the perspective of the financial geography, the financial exclude phenomenon is essentially the result of the process of distribution of financial resources among areas and its corresponding regional coordination and interaction. From the existing literature, researchers tend to neglect the spatial effects between the affected area to discuss the current situation between the urban and rural financial exclusion. Therefore, this paper will discuss the financial exclusion from the perspective of different regions of space and spatial distribution, while also discussing the interaction of financial exclusion of interaction with regional development space, providing a new perspective and ideas for financial exclusion research.The author firstly sorts out the domestic and foreign research status of financial exclusion with all the mainstream financial measure methods and indicators, while identifying reasonable description of the extent of financial exclusion method. As for the statistics used in this paper, the author used the 2574 counties nationwide data for the study, to avoid some inadequate and shortcomings of the use of provincial data in previous study. Therefore, the approach in this paper can draw a more comprehensively and systematically conclusion for financial exclusion status in rural areas and urban areas. Then in this paper, the author used spatial econometric methods, by Moran’s I index test, confirming Chinese current financial exclusion’s association with spatial distribution, while drawing up of county spatial autocorrelation cluster Map of financial exclusion. Because of the presence of spatial correlation between regional, inter-regional spatial neglect in discussing issues of financial exclusion of contact may cause bias the study results. Therefore, under the premise of spatial correlation, the author next established space panel econometric models for the empirical analysis of the relation between nationwide counties financial exclusion and regional economic growth as well as income gap between urban and rural areas. The results showed that the financial exclusion has a significant impediment on regional economic growth and expanding the income gap between urban and rural areas. Besides, the paper also calculated the financial exclusion of direct and indirect effects on regional development to show different impact.Results of this study will help to deepen the understanding for Chinese county financial exclusion and inter-regional differences, conducive for different regions to combine their regional characteristics to reduce financial exclusion, and the development of inclusive finance economic policy.