The Research On Influencing Factors Of Rural Financial Exclusion Based On Industrial Finance Perspectives

Finance is an important economic tool to regulate modern market economy. Under the conflicting effects of the urban and rural structures, there is not only economic duality, but also financial duality. Compared with rural finance, urban finance is much more better in terms of its development. The disparity mainly reflects in the lack of efficient allocation of agricultural resources, low agricultural productivity, slow development of the modernization, scale-development and industrialization in rural areas, the difficulty for rural residents and enterprises to loan and the high cost, the merge of a large number of financial institutions, serious capital loss and the poor financial service in rural areas. Rural finance can not play its due role in improving the “ San Nong( rural areas,agriculture and farmers) ” and promoting the economic development. The rural financial exclusion demands prompt solution. Rural economic system reform has made obvious achievement, but it is minimally effective and not optimistic in rural financial development. This issue has aroused high attention of the government and scholars. They are searching for the solutions to financial exclusion through enacting rural financial reform measures and exploring the development of rural finance in various perspectives.Financial exclusion is a new theory. It is a complex economic phenomenon and also is a systematic economic issue. In our country, the study on financial exclusion started fairly late, the theoretical foundation is weak, and the research results are inadequate. So far, the researches in our country is mainly about the rural financial exclusion theory study, regional gap analysis and the solutions, but rare researches involve the influencing factors of rural financial exclusion. This research is based on the perspective of financial industry and presents the basic facts that the rural financial exclusion is resulted from rational choices of supply and demand sides in pursuit of profit maximization and considerations of the vulnerability of agriculture. In this paper, 620 samples are selected from 124 counties in Sichuan Province from 2007 to 2011. This research aims to analyze the influencing factors of rural financial exclusion using the number of financial institutions outlets as the dependent variableto represent the level of financial exclusion in rural areas and the influencing factors of financial institutions outlets as the dependent variable. The results have revealed the profit-driven in financial sector, the vulnerability of rural industries and inadequate financial needs in rural areas are the root causes and internal mechanism of rural financial exclusion. This research has clearly shown the main factors of rural financial exclusion include the size of the rural population, rural education, total retail sales of consumer goods, financial infrastructure conditions, the level of government regulation and geographical features of counties. Based on empirical results, the research has also proposed to solve and improve the rural financial exclusions problems by accelerating new urbanization, promoting the integration of resources in rural areas, strengthening rural financial infrastructure, emphasizing rural education investment, and increasing government policy support.