The Effect On The Participation Of Household Finance From Inclusive Finance

The researches of inclusive finance and household finance are hotspots of academic fields in recent years.The similarity between these two researches is that they could improve the wealth utility through the use of financial instruments.The development of traditional financial market provides more choices for the allocation of household assets,which accelerates household financial market.However,the uneven regional development and wealth gap brought by financial market have never been ignored.Inclusive financial market has capacity of containing more households.The reform of inclusive finance from various countries has already proved that inclusive finance is favor of improving poverty lives,reducing financial exclusion and increasing the probability of participate into financial market.The uneven economic development has caused an situation that eastern households and western households have diverse choices for financial products.Therefore,the aim of this paper is to research on the question that with the development of financial inclusive market,do more households will participate into financial market instead of being excluded?Aiming at analyzing the effect from inclusive finance on the participation of household finance,this paper will use six chapters to illustrate this question,of which the chapter 2,chapter 3,chapter 4 and chapter 5 are core sections.Chapter 2compares current development modes of financial inclusion in worldwide at first,then optimizes inclusive financial index built by Sarma to make it more in line with Chinese financial market.Afterwards,we estimate inclusive financial index of 25 provinces in China to quantify the financial inclusive market in China.Chapter 3compares allocation modes of household assets from different countries and then builds a system to measure the participation degree of household finance by using relevant variables which are chose from China Family Panel Studies questionnaires.Chapter 4 and chapter 5 make theoretical analysis and empirical analysis of the effect that inclusive finance made on the participation of household finance respectively,which are also the innovation parts of this paper.From the prospective of incomplete dynamic information game,chapter 4 analyses the expected cost and income when illustrating the impact from financial inclusive development on the expansion decision of financial institutions and household asset allocation firstly,then studiesthe relationship between inclusive finance and the allocation of household financial assets through empirical tests.This paper combines two financial hotspots by concluding relevant modes,doing theoretical description and making empirical test and pointing out that the improvement of financial inclusion could encourage more families to participate into financial market as well as increase the allocation rate of financial assets.Finally,to promote the development of household finance,this dissertation puts forward some recommendations on developing inclusive finance: the macro system requires the protection from legal regulation,the constraints from credit system and the effective guidance of governments;the micro system needs the coordination from various financial institutions;the individual level demands the active participation from inhabitants.