The Impact Of The Development Of Inclusive Finance On The Urban-rural Income Gap

Since the reform and opening up 30 years.China's economy has come a lang way.the income of urban and rural residents increased significantly.but in the same time,the income gap between urban and rural residents increased.this has a negative effect on the improvement of economic development level and social harmony.against the background if this.This year's government report says,We will reform to improve the financial services system Support financial institutions to expand inclusive finance.Previously,the state council made it clear,By 2020,We need to build inclusive financial services and security systems that are compatible with building a moderately prosperous society in all respects.Under the new normal,China will break the monopoly of large and medium-sized enterprises and high-end income groups in the financial industry,and pay more attention to the development of personal finance and small and micro finance.Pay attention to the civilian finance of low income and disadvantaged groups and pay attention to the improvement of financial service quality.This is the basic content of inclusive finance and the fundamental demand of China's financial system under the new normal economy.At present,China' rural population accounts for60%of the total populationBut per capita income in rural areas accounts for 30%of the urban population and rural areas have become an important battlefield for the inclusive financial system In2017,at the national conference on financial work Xi jinping stressed,in the new normal the significance of developing inclusive finance,and first proposed the construction of inclusive finance system.It is clear that inclusive finance is not almsgiving.it's not a disguised subsidy,More need to consider the efficiency of capital use.the profit-seeking motive among financial subjects.and financial sustainability.This paper is based on the theory of rural inclusive finance and income gap.The meaning of inclusive finance is expatiated.The transmission mechanism that affects the urban-rural income gap.and based on that,build the inclusive finance index.The effect of the fixed effect model on the development of rural inclusive financial index is analyzed.In the terns of control variables.innovative introduction of financial variables it included internet penetration,the number of P2 P platform,To export the include ofChina's finance of China'sFinancial industry on the urban-rural income gap under the new normal.In the end,on the basis of theroetical analysis and empiricial analysis,Based on the promotion off rural inclusive finance,Narrow the urban-rural income gap,the paper gives corresponding suggestions.