Research On The Influence Of Developing Inclusive Finance On Narrowing The Income Gap Between Urban And Rural Areas In Northwest China

With the development of China's economy,the living standard of urban and rural residents has been greatly improved.However,the problem of income gap between urban and rural areas is still grim.The income gap between urban and rural areas in China shows obvious regional characteristics,showing a gradual increase from the East to the West.Due to geographical location,cultural environment,economic development and other factors,Northwest China is suffering from serious poverty,and the problem of income gap between urban and rural areas is prominent.The development of Inclusive Finance is aimed at providing financial services for all social strata and groups in an effective and full range.Therefore,inclusive finance is considered to be a financial system that can reduce poverty,narrow the income gap between urban and rural areas and promote economic growth.In the relatively backward region,the study of the relationship between Inclusive Finance and rural income gap is conducive to further improving the policies and measures to promote the development of Inclusive Finance and narrow the income gap.On the basis of previous studies,this paper selects 10 indexes from three dimensions: the permeability of financial services,the usability of financial services and the quality of financial services,and uses the coefficient of variation to construct the Financial Inclusion Index(FII).The main contents of this paper are as follows:(1)Combining the relevant literature and theory at home and abroad,the connotation of Inclusive Finance and the mechanism of the income gap between urban and rural areas are analyzed;(2)From the three angles of penetration,usability and use quality of financial services,the present situation of Inclusive Finance development and the urban and rural income in Northwest China is analyzed;(3)Constructing the index system of evaluating the development degree of generalized financial development in Northwest China from several dimensions and using the method of variation coefficient to construct the FII,so that to measure the development level of Inclusive Finance in the five provinces of Northwest China,and quantify the inter provincial differences;(4)Use the variable coefficient model to analyse the relationship between the level of financial development and the income gap between urban and rural areas;(5)On the basis of the current situation analysis and empirical analysis,the policy suggestions are put forward to promote the development of Inclusive Finance and reduce the income gap between urban and rural areas.This paper,following the general process of applied economics research,combines theory and practice,normative analysis and empirical analysis,and finally obtains the following conclusions:(1)In the 2005-2016 years,the general development level of Inclusive Finance in the five provinces in the northwest of China increased from 0.0297 in 2005 to 0.1201 in 2016;(2)From dynamic analysis,2 During the period of 005-2016,the northwest Pratt finance took the turning point as the turning point in 2008 and 2011 respectively.(3)There was a significant difference in the impact of the development of Inclusive Finance on the narrowing of the income gap.The general financial policy of Ningxia and Xinjiang has significantly narrowed the income gap between urban and rural areas,and the effect of Ningxia's inclusive financial development on urban and rural income gap is 2 times that of Xinjiang.The general financial development of Gansu and Qinghai may narrow the income gap between urban and rural areas,and the widen financial development of Shaanxi may expand the income gap between urban and rural areas.Based on the above analysis and empirical results,this paper puts forward relevant policy suggestions from the perspective of Inclusive Finance to narrow the gap between urban and rural income gap in Northwest China:(1))Improve the financial infrastructure and the penetration of financial services;(2)Strengthen the innovation of financial services and improve the use of financial services;(3)Improve the financial ecological environment and optimize the quality of financial services;(4)Balance the development between urban and rural and improve the income of rural residents.