Research On The Impact Of China's Inclusive Finance Development On Urban-rural Income Gap

The stock of social wealth has accumulated with the deepening of China's reform and opening up.,the urban-rural income gap is also growing in the process.How to further eradicate poverty and narrow the income gap between urban and rural areas has become a major issue that must be faced in comprehensively deepening reform in the context of the new era.Therefore,inclusive economic growth has become an important part of economic reform and development in the new era.And inclusive finance is an important institutional guarantee and main content of inclusive economic growth.The purpose of inclusive finance development is to provide effective financial services that can meet the needs of all social strata and groups,with affordable costs,equal access to opportunities and the principle of commercial sustainability.To this end,the third plenary session of the 18 th central committee of China on November 12,2013,made clear that the benefits of China's financial services should be enjoyed by all market entities,and China should vigorously develop inclusive finance.This provides China with the guidance for developing inclusive finance and also points out th e direction for further deepening financial reform.So,what is the relationship of inclusive finance and urban-rural income gap and how to narrow the income gap between urban and rural areas with the help of inclusive finance are significant issues that need to be solved.By combing the previous theories and thesis about inclusive finance and urban-rural income gap,this paper finds that most scholars at home and abroad study do their research in the depth of inclusive finance development aspect.Less research about the width of inclusive finance development has been down.However,to truly achieve inclusive finance,"depth" and "width" as two grasp is indispensable.So this paper studies inclusive finance and urban-rural income gap from the theoretical and empirical aspects.Theoretically,this paper analyzes the influence mechanism of inclusive finance on the income gap between urban and rural areas,and constructs the index system of inclusive finance development referring to the research of Beck in 2007.This paper measures the inclusive financial development index(IFI)and urban-rural income gap between 2007 and 2016,and analyzes the current situation of inclusive financial development and urban-rural income gap in China.The empirical part of this paper uses the provincial panel data of 31 provinces from 2007 to 2016 to construct the static panel regression model from the whole country and five regions(municipality,east,northeast,central and west).It provides empirical evidence for the relationship between inclusive financial development and urban-rural income gap.This paper mainly draws the following conclusions: First,the level of China's inclusive financial development is increasing year by year,but the overall level is not high,and the regional differences are large.Second,the improvement of the level of inclusive finance in the whole country is conducive to narrowing the income gap between urban and rural areas.Third,the empirical results show that in municipality and Northwest area,the improvement of the level of inclusive finance in the whole country is conducive to narrowing the income gap between urban and rural areas,however,in other areas,this kind of relationship is not significant.