The Influence Of Inclusive Finance On Income Gap Between Urban And Rural Residents

After the reform and opening up,China's financial industry has achieved considerable development.However,the continuous widening of the income gap between urban and rural areas caused by the unbalanced allocation of urban and rural financial resources has become increasingly serious and the financial system reforms are ready to come.As a derivative state of the traditional financial system,inclusive finance can ease the fragmented development of China's urban and rural financial systems,guide scarce financial resources to focus on rural areas and other poverty-stricken areas,eliminate rural financial service blind spots,and narrow the urban-rural income gap.The paper focuses on the spatial effect of inclusive finance on the urban-rural income gap and provides theoretical references and experience for further deepening China's financial system reform.From a theoretical perspective,the paper draws heavily on domestic and foreign scholars to study the theoretical model of the relationship between financial development and income distribution,and discusses the impact of financial development on income distribution from the perspectives of individual investment,credit constraints,economic growth,and inclusive finance;From an empirical perspective,using the provincial panel data from 2006 to 2015,a fuzzy evaluation method was used to construct a development index of inclusive finance,and an exploratory spatial data analysis method was used to analyze the dynamic impact of inclusive finance on the income disparity between urban and rural residents.The results show that the impact of inclusive finance on urban-rural income gap presents a nonlinear “inverted U-shaped” curve.At present,the development level of inclusive finance in China is on the left side of the curve and has not yet reached a turning point;the development of inclusive finance in China is deteriorating in the current development stage.Urban-rural income gap.This to a certain extent indicates that China's inclusive financial development is broad at this stage.In the future,the allocation of resources for inclusive finance can be further optimized from the provincial space;the urban-rural income gap has a positive inertia effect in the time dimension,and the previous urban-rural income gap.It will have a positive reinforcement effect on the current urban-rural income gap;there is a positive spatial linkage effect between the error terms.Judging from the empirical results of the dynamic Doberman model,the development of inclusive finance in neighboring regions presents an “inverted U-shaped” curve for the urban-rural income gap in the region.The development of inclusive finance at present is on the left side of the curve.This further explains At the current stage,the accumulation of inclusive financial resources in the neighboring regions has worsened the distribution of urban and rural incomes in the region.There is a domino-type competition for resources between provinces,and there is a wide range of development in different provinces.From the spatial regression of the Dubin variable to the inclusive financial index,it can be seen that the development of inclusive finance in neighboring regions has a strong regional diffraction effect,which can significantly improve the urban and rural income distribution in the region and the dilemma of financial services in the surrounding region,Optimizing the urban and rural income distribution pattern,and because China's current level of inclusive financial development is relatively low,it has not crossed the highest point of the quadratic curve,and its positive optimization effect on the urban and rural income distribution pattern has not yet been realized.The empirical results of the spatial autocorrelation between provincial urban and rural income gaps are not ideal.The increase in the level of urbanization,the level of government expenditures,and the level of education will help narrow the income gap between urban and rural areas.The increase in urban employment pressure will widen the urban-rural income gap.In addition,in the results of spatial econometric regression of the three types of matrices,the impact of inclusive finance on urban-rural income gap is slightly greater in all spatial autocorrelation models.The income gap between urban and rural areas is even more influential.In the spatial Dubin model,the development of inclusive finance in neighboring regions under the comprehensive weight matrix has a greater spatial impact on the urban-rural income gap in the region.Based on this,it is believed that the development of China's inclusive financial system should focus on the coordination of “flow rate” and “flow direction”,change the current situation of saturation accumulation of financial resources in developed urban areas,and actively guide scarce financial resources to China's rural poverty areas.Break through the bottleneck of rural financial development,raise the income level of farmers,further optimize the allocation of urban and rural financial resources,and pay attention to the coordination of income distribution policies.