The Impacts Of Financial Inclusion On Economic Development In China

The study on the relationship between financial development and economic development has always been a hot point for scholars all over the world.Since the reform and opening up,China's economy has been developing rapidly.For some reasons,some groups in society still do not have access to the financial system or to obtain the necessary financial services in the proper form,resulting in financial non-inclusion,which restricts the economic development of our country.With China's economy entered into the period of new normal,to improve the level of financial inclusion is of great significance in promoting financial reform and economic development.At the same time,we must pay attention to that the development of China's regional differences are more obvious.So how to coordinate the development of finance and economy in China becomes a focus issue.Based on the background,this paper uses the provincial data to study the impact of financial inclusion on economic development,and puts forward countermeasures and suggestions according to the conclusions to make suggestions for China's financial reform and economic development.In this paper,firstly,the author reviews literature from domestic and foreign scholars from the perspective of financial inclusion and economic development to find the research point of this article.Then,it clearly defines the service object of financial inclusion and influence factors of financial inclusion and economic development,and further analyzes the mechanism of financial inclusion on economic development to lay a solid theoretical foundation.Next,from three dimensions of convenience,coverage and use of financial service,using the method of entropy to determine the weight of index,this paper calculates the provincial index of financial inclusion to investigate the current situation in China;from three aspects of economic growth,industrial structure and income level,based on the Theil index,this paper analyzes the current situation of economic development and make a forecast that financial inclusion has a positive impact on the economic development in China.Subsequently,this paper selects provincial data from 2006 to 2015 to construct the panel data model to do empirical test and discuss the influence of financial inclusion and financial deepening on economic development.Through theoretical analysis,current situation analysis and empirical analysis,conclusions are summarized as follows:firstly,China's regional financial inclusion and economic development are more obvious imbalance;Secondly,from a nationwide perspective,the economic growth effect of financial inclusion is obvious and also can effectively narrow the urban-rural income gap,but financial inclusion on the optimization of the industrial structure has not been fully reflected in the short term;Thirdly,the impact of financial inclusion on economic development is stronger than the impact of financial deepening on economic development,which means that the"qualitative" role of financial development is obviously better than the "quantity" role of financial development.Finally,this paper puts forward countermeasures and suggestions according to the conclusions.From a nationwide perspective,when formulating the strategy of financial development and economic development,China should enhance the level of financial inclusion to ensure that the "quality" and "quantity" of financial development are balanced in a long-term consideration.So we should establish and improve the construction of multi-level financial system,strengthen supervision,play a coordinating role of the government's macro-control and market self-regulation and promote social equity.From a regional level,regional development differences should be taken fully consideration.The eastern region should play a leading role and focus on financial innovation.The central and western regions should enhance the level of financial inclusion and form a good mechanism of financial support for economic development to realize the coordinated development.