The Influence Of Inclusive Finance On The Consumption Gap Of The Residets In China

The concept of China’s inclusive finance essential purpose is to enable all sectors of society to share financial development results and achieve common prosperity.Due to China’s special national conditions,the gap between the rich and the poor has always existed.Inclusive finance can promote resources to backward areas to narrowing the income gap between urban and rural areas.In the report of the 19th National Congress of the Communist Party of China,General Secretary Xi Jinping pointed out for the first time that the main contradiction in our society has been transformed into a contradiction between the growing needs of the people’s better life and the development of inadequate and unbalanced development.Consumption is a direct reflection of the people’s need for a better life.However,the gap between urban and rural consumption still exists in China.Therefore,based on the research of inclusive finance and income gap in academic circles,this paper innovatively proposes the development of inclusive finance for urban and rural areas in China.The impact mechanism of the consumption gap and the mediating effect of the income gap.The theme of this paper is conducive to understanding the development status of China’s inclusive finance and proposing relevant advices to alleviate the gap.It is also conducive to better realizing mutual promotion of economic and social development and meeting the growing needs of the people for a better life.This paper refers to the current domestic and international research,draws on the inclusive financial development index system proposed by Sarma and finally selects three dimensions to measure:financial service availability,usage and service quality.It also innovatively introduced two indicators related to the development of agriculture,countryside and micro-credit companies,based on which,the development level of Inclusive Finance in China’s national and regional areas in 2007-2017 was estimated.Through comparison and related analysis,it is found that has been improved in recent years,but in terms of regional division,the gap between different regions is large.On this basis,this paper selects relevant indicators and selects relevant national statistical data from 2007 to 2017 to establish a dynamic measurement model,which is studied from the time and regional levels.Based on this,the time variation and regional differences of the impact mechanism are discussed,which provides effective suggestions for China to better develop inclusive finance.This paper draws the following conclusions:There are two mechanisms for the impact of inclusive finance on the consumption gap between urban and rural residents.One is that the development of inclusive finance directly promotes household consumption,affecting the consumption gap between urban and rural residents;the other is through the mediating effect of the income gap is indirectly affected.At the time level,the consumption gap between urban and rural residents has shown an expanding trend under the direct influence of the development of inclusive finance.Under the influence of the direct impact of the development of inclusive finance,the consumption gap between urban and rural residents will first show an expanding trend.However,as time goes by,according to the empirical results,the development of inclusive finance has significantly narrowed the gap between urban and rural residents.Among them,the proportion of the influence of the intermediary effect of urban and rural residents’ income is increasing.At the regional level,the two influential channels of inclusive finance in the eastern region tend to narrow the consumption gap,and the indirect effects of the two mechanisms account for a relatively small proportion.The direct and indirect effects of inclusive finance in midlands have expanded the urban and rural residents.The consumption gap and the mediation effect account for a larger proportion.The direct and indirect mechanisms of inclusive finance in the western region have expanded the consumption gap.In the northeast region,the indirect financial mechanism and indirect mechanism directly reduces the consumption gap between urban and rural residents.Based on the above empirical research conclusions,combined with the current situation of China’s inclusive finance and urban and rural residents’ consumption gap,this paper proposes corresponding countermeasures and suggestions to promote inclusive finance to better play the role of consumption and narrow the consumption gap.