Influence Of Inclusive Finance Development On Income Gap Among Farmers In China

Since the reform and opening up,China's economy has achieved rapid development,which has greatly improved the income of Chinese farmers.However,it is accompanied by the stratification of farmers' income and living standards.On the one hand,with more and more rural population flooding into cities,the means of farmers' income is no longer limited to the natural economy,and the sources of income are gradually diversified.On the other hand,the consciousness of market economy affects the resource allocation structure of some farmers.These changes make the financial development has an important impact on optimizing the distribution of farmers' income.Therefore,the analysis of the relationship between the development of inclusive finance and the income gap among farmers can help us to have a clearer understanding of the current situation of the development of inclusive finance and the income gap among farmers,and to take inclusive finance as the foothold to put forward targeted countermeasures and Suggestions for narrowing the income gap among farmers in China.Basing on the theory of financial exclusion,dual economic theory,Kuznets inverted U-type theory and agricultural credit subsidy theory,this paper discusses the relationship between the development level of inclusive finance and the income gap of residents in China.And analyze the development status of inclusive finance and the status quo of rural internal income gap.In the measurement of inclusive financial level,the paper uses six indicators of the two dimensions of the availability and use of financial services to construct inclusive finance.The index,which accounts for the inclusive financial level of China,finds that the level of inclusive finance has increased year by year across the country,but there are large differences between regions.The impact mechanism of inclusive financial development on the internal income gap of farmers is mainly classified into the following three types: one is the threshold effect of inclusive finance development.The development of inclusive financial makes the low-income groups of rural can be accessed to financial services,which break the threshold of financial services,making financial services of the disadvantaged groups in economic exclusion degree decline,such as by making the financial institutions to reduce the credit requirements,easy credit constraints,the poverty in the countryside can get higher income by credit funds,so as to narrow the gap between the rural internal income.Second,poverty reduction effect.Topromote the diversification of financial institutions,expand the coverage of financial institutions,so that vulnerable groups in rural economy can access to a richer range of financial products and services,so as to improve their ability to obtain higher income.Third,the trickle-down effect.Financial development will inevitably bring economic growth,the rise of economic level makes the income level of national finance income and the rich-people increase.It means that the government can provide more benefits for rural economy vulnerable groups,the rich-people can drive to improve the poor people in rural incomes such as investment,consumption,reducing the farmers' income gap inside.The empirical part adopts panel data model of 16 provinces from 2005 to 2012 for regression analysis.The results show that,at the national level,the development of inclusive finance helps to alleviate the income gap among farmers;Regional level,through the regression analysis,it can be seen that the development of inclusion financial to reduce the farmers income disparity has a significant reverse effect,and the influence of western and central region is greater than the eastern.Means we can from inclusion financials' depth and breadth to promote develop inclusion financial,narrow the gap between the income of farmers.