The Impact Of Financial Inclusion On Income Inequality And Financial Stability In Countries Along "The Belt And Road"

Since its introduction,"the Belt and Road" Initiative has been adhering to the core concepts of peaceful cooperation,openness and tolerance,mutual learning and mutual learning,mutual benefit and win-win,promoting common prosperity and development,and promoting the building of a community of human destiny.As an important support for the construction of "the Belt and Road Initiative",the construction of an international financial cooperation platform is the basis for improving the capital efficiency of "the Belt and Road Initiative" and effectively preventing and controlling the financial risks of the project.Promoting financial inclusive development is an indispensable part of building a multi-level financial service system.Therefore,whether the financial inclusive improvement in "the Belt and Road" construction process will affect the economic development and social development of countries along the route should be attention.This paper pays special attention to the impact of financial inclusion in the countries along "the Belt and Road" on income inequality and financial stability.It sorts out relevant literatures and introduces the basis of existing research of the current domestic and international research on financial inclusion m easurement methods,the relationship between financial inclusion and income inequality,and the research results in the fields of financial inclusion and financial stability.We do the further expansion analysis in "the Belt and Road Initiative" as the strategic background.We select the panel data of 39 countries along "the Belt and Road",in 2005-2016,and use the improved generalized two-stage principal component analysis method to measure the financial inclusion index to measure the degree of financial inclusion in the various periods of each country.And the comprehensive and feasible generalized least squares regression method is used to study the specific impact of financial inclusion on income inequality in the countries along "the Belt and Road Initiative",and the robustness analysis is carried out by group regression method and panel quantile regression method.Except that,we use the generalized moment regression method to research the impact of financial inclusion on financial stability in countries along "the Belt and Road Initiative",and focus on the impact of financial service usage dimension in financial inclusion,which is the deposit and credit levels,on financial stability.Through the above research,there are two conclusions to be obtained:First,the effect of the financial inclusion of the countries along "the Belt and Road" has a Kuznets effect on the income inequality,showing an "inverted U-shaped" situation.It will increase the degree of income inequality over time,but will have a positive effect on narrowing the gap between rich and poor in the long run.High-income countries have entered the development stage of improving financial inclusion level in favor of income equity,but low-and middle-income countries still need to pay attention to the adverse effects of the gap between the rich and the poor by promoting inclusive financial processes.And the financial inclusion have the most dramatic effects to the middle-income gaps countries,while the impact on the both ends countries is not significant.Second,the increase in financial inclusion in countries along "the Belt and Road" has a negative effect on financial stability.Credit expansion is the main factor for risk increase,but the increase in deposit base has a positive impact on financial stability to some extent.Therefore,in the process of building "the Belt and Road" international financial cooperation platform,we should thoroughly understand and closely monitor the different political,economic,and cultural conditions of different countries along the route,give full play to their respective advantages,and do a good job of adapting to local conditions.Establishing a service for the real economy is the concept of financial purposes,which is also a fundamental measure to prevent financial risks.At the same time,establish a multi-level,sustainable,inclusive and innovative financial service system,discuss the construction of regional credit system,continuously expand financial support means,and promote the coordinated development of regional economy and society.Correctly understand the potential risks,actively promote "the Belt and Road" participating countries to conduct in-depth exchanges and comprehensive cooperation in supervision and management,strengthen the formulation and implementation of flexible and normative supervision mechanisms,and strengthen the ability to jointly prevent financial risks,in order to promote the stable development of the regional economy.