The Measurement And Evaluation Of Inclusive Finance And Its Determinants In Shandong Province

In recent years,the economy is experiencing a stage of rapid development in China,the financial industry has a strong development momentum.However,kinds of structural problems and system defects gradually appear in the process of development,the most prominent problem is the unbalance of financial layout and regional development,big gap between urban and rural areas,serious financial exclusion,and so on.Traditional financial institutions can not solve these issues very well,it is difficult to meet the broader and growing financial needs.Thus,it is imperative to deepen financial reform and establish new-type financial development mode so as to solve all kinds of difficulties in the development.As a new concept,different from the traditional financial system,Inclusive Finance pay more attention to the inclusivity so that it can provide financial services for underprivileged groups.Inclusive Finance provides comprehensive and high-quality financial services for farmers,small enterprises and other disadvantaged groups by guiding the rational resources allocation.At the same time,expanding efforts to support the real economy is of great significance to promote the transformation and upgrading of economic structure,increase social welfare,and maintain social equity and stability in Shandong Province.At present,domestic and foreign scholars’ study on Inclusive Finance is still not full and perfect and most of them focused on the theoretical perspective,only a few scholars to measure the inclusive financial development level.There are still some gaps in the empirical study on the inclusive financial development of Shandong Province,especially in the comparative research of every city in the province..This paper puts forward a more comprehensive method on measure the level of inclusive financial development based on the analysis of the present situation,the contradiction between supply and demand in Shandong Province.First,the author builds inclusive financial evaluation index system of Shandong Province,then calculates the inclusive financial development index of Shandong Province and cities in the province specifically from 2009 to 2014.The author comparative analysis inclusive financial developmental difference among different areas of Shandong Province for the first time.Secondly,the author structures influence factor multi-regression model from three dimensions that financial development factors,macro-economic situation and social environmental factors,and analyze the factors affecting the inclusive financial development in Shandong Province based on panel data OLS regression.This study found that,the development index of inclusive finance increased year by year in Shandong Province and the degree of financial inclusion has increased dramatically relative to 2009.The development level of inclusive finance in different cities has enormous differences,the development index of inclusive finance was highly identical with the per capita income in different areas.The city with higher level of per capita income,has a higher inclusive financial development level generally.The average level of inclusive financial development in different geographical regions in the province also has a big difference,the eastern region of Shandong Province has the highest level of inclusive financial development,the southern region has the lowest level.The factors that financial related rate,the level of GDP per capita and transportation have a significant positive role in promoting the development of inclusive finance,agricultural development level and the income gap between urban and rural areas have a significant negative impact on inclusive financial development,meanwhile there was no significant correlation between the two factors that education level and the rate of city and the inclusive financial development index.The author have found some problems in inclusive financial development in the process of research,and put forward the corresponding policy recommendations,which have certain practical guiding significance to improve the level of inclusive financial development in Shandong Province.