Analysis On The Influencing Factors Of Rural Financial Exclusion In Shandong Province

Rural financial exclusion means that it is more difficult for rural areas or remote and impoverished areas to obtain financial services and financial products than cities.With the increasing economic development in Shandong Province,the gap between urban and rural areas has shrunk,but there are still many rural and remote township financial development problems.At present,Shandong's rural financial system is not complete.In 2016,the county GDP of Shandong Province reached 337,794 million yuan,accounting for 50% of the GDP of the province's economy,which is far from the 76.9% in2004.This may be due to changes in urban planning in the past decade or so,and the withdrawal of county-level districts in several county-level cities in the province.Although the GDP in the province has been increasing,from 2004 to 2016,the GDP has doubled,but after the withdrawal of county-level cities,the counties with strong economic development capacity are not counted within the county area.The economic development of Shandong Province has,to some extent,eased the financial exclusion in rural areas.However,most rural households have not received or satisfied financial services such as loans,deposits,and exchanges,or related financial products.Rural financial exclusion is still not complete.Eliminated,ubiquitous.This article first carries out a nominal interpretation of rural financial exclusion,defines the definition of financial exclusion,analyzes the theory of rural financial exclusion,analyzes the relationship between financial exclusion and the branches of financial institutions from a theoretical perspective,and then analyzes rural financial exclusion in Shandong Province.The influencing factors provide a theoretical basis for using the number of business outlets of county-level financial institutions as a proxy variable for rural financial exclusion in Shandong Province.In this paper,a random-effects panel model is used to empirically analyze the business outlets of financial institutions in rural areas at county level units in Shandong Province from 2007 to 2015,and the coastal and non-coastal geographical location factors are added as dummy variables.Finally,the results are presented based on empirical test results.Shandong Province,eliminating the policy of rural financial exclusion.The results of the study found that the current Shandongprovincial government regulatory factors,coastal geographical location factors,total retail sales of consumer goods,rural household savings balance,and primary industry GDP have the most significant impact.It is recommended that the county of Shandong Province should develop its economy according to local conditions,increase rural household income,and the government liberalizes,Reasonably supervise the market to eliminate rural financial exclusion in the province.In general,the study of financial exclusion,especially the study of financial exclusion in rural or remote and impoverished areas has not yet formed a systematic theory and results.The literature on the in-depth exploration of rural financial exclusion is not particularly large.In the context of the current financial exclusion problems in rural areas or in remote and impoverished areas in Shandong Province,the classification study of which factors has the most significant impact on financial exclusion in rural areas in the province,eliminates rural financial exclusion in Shandong Province,and promotes the establishment of a sound rural population.The Hui financial system has helped the rural areas have important practical significance in building a well-off society in an all-round way.