Study On The Effect Of Inclusive Finance To Urban-Rural Income Gap

Nowadays,Inclusive Finance is the popular trend of the financial development all over the world.The development of the globally inclusive financial framework is being more and more perfected.Furthermore,an increasing number of people have been paid attention to the concept of the inclusive finance.China accepts the concept of the inclusive finance positively and promotes the practice constantly.Therefore,building a multi-level,widely-coverage and sustainable inclusive financial system is the major strategy and developing target.Since from the reform and opening up,China's economy continue to be steady and fast,which has effectively improved the household's economic status and achieved a significant increase in household income.Inclusive Finance,a new and original concept,has broken up the traditional development mode.In contrast,inclusive growth concept will benefit a wider social group.The development of Inclusive Finance is expected to narrow the income gap between urban and rural areas to a certain extent.It is an important thing which can improve the economic quality and efficiency improvement and promote the reform of finance.Therefore,the research on the inclusive finance will have an important significance on narrowing the gap between urban and rural areas and will also on the coordinated development of economy.The main purpose of this paper is aiming at analyzing that whether the Inclusive financial development will have an impact on the income gap between urban and rural areas.Combing and analyzing the related literature both here and abroad proves that there is a very close relationship between the two variables.We should do researches on inclusive finance to find whether it has influence on the gap between urban and rural areas.Firstly,we conclude and analyse the theory and influence mechanism.Then I use the method of empirical test to prove the relationship between them.Considering about the regional differences,we divide China into three major areas to make the further study.The results show that China's inclusive financial development level has a significant impact on the income gap between urban and rural areas.There are obvious regional difference characteristics in different areas.Thedevelopment of inclusive finance plays a positive effect on alleviating the income gap between urban and rural areas in eastern and central regions,while the western region has no significant effect.In addition,the influence effect in central region was significantly higher than the eastern region.The development of Inclusive Finance extends the depth and breadth of financial resources coverage.And it can also provide a strong guarantee to alleviate the gap between the rich and the poor.According to the situation of inclusive financial development and the results of the empirical analysis,the paper puts forward the following suggestions: Firstly,we should establish a multi-level financial service system to expand the depth and breadth of inclusive financial services actively;Secondly,our country should strengthen the innovation of financial products and services in order to stimulate the development of inclusive financial activity;Thirdly,it is important to enhance financial inclusion mechanism influence to reduce the income gap between urban and rural areas effectively.At last but not least,implementing the strategy regional differentiation development aims at promoting the coordinated development of inclusive finance.Development of Inclusive finance will provide a lasting financial support improving the distribution pattern of income and reducing the income gap between urban and rural areas.