An Study On The Impact Of Inclusive Finance On The Rural-urban Income Gap In Anhui

Since the reform and opening up,the living standard of residents in Anhui province has been continuously improved,and the income gap between urban and rural residents has also been widening.The long-term existence of the urban-rural income gap leads to the lack of effective demand for the entire social consumption at the economic level and jeopardizes the social harmony and stability at the political level.And the existing urban-rural dual economic structure has made the coverage of financial institutions in rural areas small,the density of employed people is nothigh,rural areas continue to flow into urban areas with higher capital utilization,the financial threshold makes it difficult to narrow the urban-rural income gap.In 2005 the United Nations proposed inclusive financial system can guide scarce financial resources to allocate reasonably and effectively,reduce the financial threshold for some low-income groups can enjoy financial services,to solve the problem of unfair income distribution.Therefore,the development of inclusive finance is conducive to gradually eliminate the dual structure of urban and rural areas in Anhui Province,which has a positive effect on reducing the urban-rural income gap.Firstly,This article defines the related connotation of inclusive finance and the urban-rural income gap,and focuses on the analysis of the mechanism of the inclusive finance and the external conditions that affect this mechanism.Through the direct mechanism and the indirect mechanism,the inclusive finance will jointly affect the urban-rural income gap.At the same time,this mechanism is also affected by the relevant laws,regulations and policies,the credit system construction and the popularity of financial knowledge and other external factors.Secondly,This article analyzes the status quo of inclusive financial development in Anhui Province and the existing problems in the process of development,and builds the inclusive financial index measurement system to quantify the level of inclusive financial in all cities in Anhui Province from 2011 to 2016,draw the following conclusions.First,the policy system for the inclusive finance is gradually perfected,the structure of the financial institutions is constantly improved and there is ample demand for financial services.Second,the development space of rural financial institutions is limited,the new rural institutions have limited role in improving and supplementing rural financial services,and the supply of financial services is insufficient.Third,the development level of inclusive finance in Anhui is low,but the development of inclusive finance shows a trend of rising volatility.And generally,show that the better the level of economic development,the higher the level of inclusive financial.Fourth,there is a large difference in the development level of inclusive finance in various regions of Anhui,and the allocation of financial resources in southern Anhui is the most balanced.Then,due to the mechanism of inclusive finance,this paper constructs a mediating effect model to empirically study the direct and indirect mechanism of inclusive finance.The results show that the level of inclusive financial development in Anhui Province is significantly negatively correlated with the urban-rural income gap.However,the influence of inclusive finance in regions is different in sub regional panel regression.there is a negative mediating effect of inclusive financial on the urban-rural income gap,however,there is a significant positive mediating effect in regional panel regression;the promotion of urbanization rate can significantly reduce urban-rural income gap,and the influence of other control variables in each region is different.Finally,according to the conclusion of the study,this paper puts forward.some policy proposals on how to make better use of inclusive finance to narrow the urban-rural income gap.First,we should promote the supply reform of financial services,expand the scope of inclusive finance,address the issue of desertification in financial services,speed up the development of new rural financial institutions,supplement and improve the form of financial services.Second,implement inclusive financial regional differentiation policy,probe new financial products and services and activate the influence of inclusive financial system.Third,we should make the most of the indirect function mechanism of inclusive finance,seize the driving force of the existing economic growth,continue to tap new economic development mode and make good use of the positive role of economic development;Fourth,reform household registration system to strengthen the rural surplus labor mobility and improve the income level of rural residents.Fifth,we need to raise the awareness of financial services to the main body of inclusive finance,and promote the diversification of inclusive financial needs,so as to form a financial demand that matches the supply.