Research On The Influence Of The Development Of Inclusive Finance On The County Economic Growth In Anhui Province

The county economy is the link that coordinates the urban and rural economy and is an important foundation for the operation of the national economy.For a long time,China's regional economic development has shown an imbalanced state,and the county economy is clearly in a relatively weak position.The relevant documents of the government have repeatedly mentioned “strengthening the county economy”.The finance is an important mechanism affecting economic growth and is closely related to the economic growth.Under the current situation that China's rural financial market is underdeveloped,the inclusive finance will be a new breakthrough for solving the financial support problem of the county economic growth.In 2005,when the United Nations promoted the "International Microfinance Year",it officially proposed the "Inclusive Finance".At the end of 2015,the State Council issued the "Promoting Inclusive Financial Development Plan(2016-2020)",which was the first time to promote the inclusive finance to be a China's financial development strategy.The "Outline of the 13 th Five-Year Plan of Anhui Province" clearly pointed out that it is necessary to vigorously develop the inclusive finance,accelerate the development of the county economy,and effectively consolidate the half of the province's economic development.It is seen that the county economic development status is directly related to the improvement of Anhui's comprehensive economic strength,and the development of inclusive finance is an important way to accelerate the county economic growth.Therefore,it is necessary to study the relationship between the development of inclusive finance and the county economic growth in Anhui Province to explore how to better develop the inclusive finance to promote the county economic growth.Firstly,this paper systematically reviewed the studies on the inclusive financial,including the connotation,the construction of evaluation indices and its relationship with the economic growth,expounded the concepts of the inclusive finance and the county economy and related theories,and summarized the theoretical mechanisms that how the inclusive financial development influences on the county economic growth.Secondly,according to the “China Inclusive Financial Indicator System” formulated by the People's Bank of China,the inclusive financial indices of 61 counties in Anhui Province were measured to measure their inclusiveness.The level of financial development and the development status of inclusive finance in Anhui Province were evaluated.Finally,based on the constructed inclusive financial index(IFI),using the cross-sectional data for 61 counties in 2017 in Anhui Province,a threshold regression model was established,the empirical study of the effect of inclusive financial development on county economic growth was taken,and the threshold effect of the inclusive finance was focused on.The results are as follows:(1)From the measures of the inclusive financial index of 61 counties in Anhui Province,most(51)of the counties are in a low level of inclusive financial development,only a small part(10)of the counties are in a relatively high level.(2)From the perspective of regional differences,the development level of inclusive finance in southern Anhui province is the highest,and only the counties of Hefei city are in a higher level in central Anhui province,while the development level of inclusive finance in northern Anhui province is the lowest,and there are obvious differences in the development level of inclusive finance between different regions.(3)According to the empirical study of the threshold regression model,the development of inclusive finance in Anhui Province can promote county economic growth,and there is a threshold effect.In the counties with low development level of inclusive finance(IFI ? 0.1562),the role of the inclusive finance in promoting county economic growth is relatively small,and the influence of inclusive finance cannot be compared with other economic growth drivers.Once the development level of inclusive finance crosses the threshold value(IFI = 0.1562),the contribution of the inclusive finance to economic growth is significantly enhanced and the inclusive finance becomes an important force to drive the local economic growth.Therefore,it is recommended that counties with low development level of inclusive finance but close to the threshold value should appropriately improve the development level of inclusive finance,making it an important thrust to promote county economic growth.