A Research On Financial Exclusion Differences Between Urban And Rural Areas And Influence Factors In Western China

Finance is the core of modern economy, the development of finance decides the economic development. Since reform and opening-up, the financial development of China's western town and rural area is rapid, and has formed a comparative complete financial system. But overall, there are still some problems in the financial development of town and rural area, the financial sector difference between urban and rural area is relatively serious, leading to the degree of financial exclusion between the urban and rural areas in western China more serious.Financial exclusion generally refers some financial subjects can't enjoy necessary financial services due to its own reason or the causes of financial institutions. Financial exclusion is a subset of social exclusion, is an extension of social exclusion in the financial sector, while the research of social exclusion is mainly the poverty of society,social income, distribution,and so on. As a result, financial exclusion has become an important concept that can explain a lot of social problems. In recent years, the economy of China is rapidly developing,but there are still a series of social problems for example the gap between the rich and the poor,imbalance of economic development,and so on, especially the unbalanced development of economy in the west is more serious, leading to the urban and rural financial exclusion difference in western China being more serious. So the research on financial exclusion differences between urban and rural areas in western China can not only expand the dimensions of the academic research on financial exclusion problems, but also helps to perfect the financial system of urban and rural areas in western China, promote the coordination and balance of urban and rural economic development.Based on the above analysis, in this article, we study the financial exclusion difference between urban and rural areas in western China and influencing factors from the perspective of urban and rural differences. First of all, this article builds a scientific evaluation index system by drawing lessons from existing research results and measure the index of financial exclusion difference between urban and rural areas in western China through using principal component analysis method. Then, This article uses the fixed effects model to exclude the influence factors of financial differences between urban and rural areas in western China, Using the panel data of 11 provinces, autonomous regions and municipalities directly under the central government in western China from 1998 to 2013. Finally, this article expounds the theoretical and empirical analysis of the front several chapters and put forward some decisions to perfect the financial system in western China according to the conclusions.