Research On The Development Of County-level Inclusive Finance And Inclusive Growth

At present,the problem of uneven distribution of national income and the widening gap between the rich and the poor has become one of the most serious challenges in China.Promoting financial inclusion is of great practical significance to improving income distribution,increasing household income and pursuing inclusive economic growth for China.Although the development of China's financial industry has achieved certain results,regional financial resources are unevenly distributed,and the poor people in counties,small and micro enterprises,remote rural families and other vulnerable groups are excluded from the formal financial system and cannot enjoy financial services.In this context,the state council issued the Plan for Promoting Inclusive Finance Development(2016-2020)in 2015.At the 19 th CPC national congress,President Xi jinping stressed the importance of building a inclusive financial system with Chinese characteristics.No.1 Central Committee Document 201,requires that the growth rate of inclusive agriculture-related loans was higher than the average growth rate of various loans.Inclusive growth has also become the Sustainable Development Goals of all countries.Inclusive financial development and inclusive growth both pursue harmonious economic and social development,and people of all ethnic groups share the dividend of economic growth.This will play a positive role in alleviating theimbalance and inadequacyin China's new era.So,what is the impact of inclusive financial development in counties on inclusive growth? Can the different income stratum of the county enjoy the financial resources equally? This article will carry on the thorough discussion and the analysis to this question.Inclusive growth has two goals,pursuing economic growth and equality.This paper constructs a theoretical model to simultaneously analyze the growth effect and distribution effect of inclusive finance development in county areas.And studies the growth effect and distribution effect of inclusive finance development in county areas on residents' income under the same framework.In order to ensure the robustness of the results,this paper also explores the influence of inclusive finance development on the income gap between urban and rural residents in the county.Finally,this paper continues to empirically study the three sub-dimensions of inclusive finance,The availability of financial services,the utility of financial services and the contribution of financial institution penetration to the income growth of county residents and the income distribution of urban and rural areas.The result shows that :(1)On the whole,promoting the development of inclusive finance contributes to poverty reduction and income increase of county residents;It is found in the stratified study of counties that the income increasing effect of inclusive finance development is significantly different in counties with different degrees of development.And the marginal rate of return of financial elements in developed counties is higher.(2)The income increase effect of inclusive finance development is shown as follows: the rich group > poor group > ordinary group.when the top rich group is not considered,the poor population can obtain significantly higher marginal returns from inclusive finance development,which preliminarily proves that promoting inclusive finance in county areas can improve the inclusiveness of the financial system.(3)More importantly,low-income groups in counties can benefit more from the development of inclusive finance.Promoting inclusive finance can effectively improve income distribution within counties,alleviate income inequality between urban and rural areas,and promote inclusive growth.(4)Inclusive finance development plays a greater role in narrowing the income gap for counties with alarger internal income gap.Inclusive finance development significantly improves the inclusiveness of the economic system and improves the income distribution pattern within counties.(5)The contribution of each sub-dimension of inclusive finance to increase the income of county residents and narrow the income gap between urban and rural areas is the same as: Availability > Usage > Penetration.Finally,this paper proposes relevant strategies for inclusive growth based on the above conclusions.First,build an inclusive financial system environment should be related department first.Policymakers should improve the availability of county financial services and products,encourage financial innovation credit products,better through the savings,credit and insurance products to protect the life and production of vulnerable groups,to cultivate residents from accept to without as a policy point of financial services.Secondly,government intervention should be carried out in the development of inclusive finance to give preference to the interests of vulnerable groups and help the economy of backward counties achieve sound development.For economically developed counties with strong ability to acquire factor resources.A comprehensive policy targeting mechanism can be formulated to allocate more financial resources to backward counties.Third,in combination with the county economic environment and economic opportunities to cultivate industries with significant economic benefits.Increase the construction of inclusive finance infrastructure and fixed asset investment in counties with large urban-rural income gap,and enhance the endogenous capital accumulation ability of middle and low-income groups.In addition,we should follow the trend of technology-driven and mobile banking and shape the development path of digital inclusive finance.