Research On The Inclusive Financial Ecological Environment Quality Evaluation And Influencing Factors In The Western Rural Areas Of China

Western rural areas are remote in geographical position and have poor natural conditions.The economic development is backward and rural poor population is numerous in western rural areas.So there exists widely many serious problems such as financial exclusion and being lack of financial services.Financial needs in rural areas are far from being met.And inclusive finance emphasizes the provision of effective financial services for all sectors of society and groups with financial service needs,especially for vulnerable groups such as small and micro enterprises,farmers,low-income groups,etc.It is of great significance to develop rural inclusive financial eco-environment in Western China for promoting local economic development,narrowing income gaps,reducing poverty and achieving social equity.Rural inclusive financial ecological environment is a typical complex social economic system which has multiple feedback,dynamic,strong nonlinearity,etc.System dynamics is a cross-disciplinary discipline developed to meet the needs of modern social economic systems which searches through information feedback system.And sensitivity analysis can be performed at any time to achieve the simulation of the strategy,so that the model better reflects the real system Since rural areas in the west are the regions with the highest incidence of poverty in China and there are widespread financial services,financial needs are not met,and financial exclusion is a serious problem,Western rural areas should be used as the focus of promoting inclusive finance in China.Firstly,this paper analyzes the status quo of the development of the inclusive financial ecological environment and summarizes the problems existing in the rural inclusive financial ecological environment in the western region.Then,according to the basic principles of system dynamics,the rural inclusive financial ecological environmental system is divided into five sub-systems:rural economic foundation,level of rural inclusive financial development,rural social credit,rural social security,and government public service by using the basic principles of system dynamics.This paper also analyzes the causal feedback relationship among the index variables,and then quantifies the causal feedback relationship to obtain the system flow chart and the system dynamics equation,and constructs a dynamic model of the rural inclusive financial eco-environmental system.Combining the statistical data of seven provinces in the western region,this paper have obtained the evaluation results of rural inclusive financial eco-environmental quality in the seven western provinces.The results reflect the changes in the quality of rural inclusive financial eco-environment in seven provinces over the past 15 years and the development trend in the next four years.Finally,through sensitivity analysis,it was concluded that the non-performing loan rate of rural financial institutions,the average loan interest rate for agriculture-related loans,the average loan interest rate for small and micro enterprises,the proportion of balances involving agricultural loans,and the proportion of loan balances for small and micro enterprises are the main factors which influence rural inclusive financial eco-environmental quality in Western China.In addition,the quality of rural inclusive financial eco-environment in Western China is most sensitive to the rate of non-performing loans in rural financial institutions,the average loan interest rate for agricultural loans,and the average loan interest rate for small and micro enterprises.