Research On China's Financial Exclusion And Its Income Effect

As a social problem in the world,financial exclusion has always been an important issue for scholars at home and abroad.At present,the status quo of China's financial exclusion is still grim.Financial exclusion has an important influence on China's economic development and residents' income,while the research on financial exclusion is still in its infancy.Theoretical interpretation of the emergence of financial exclusion phenomenon and empirical investigation of its income effect have important practical significance for alleviating the status quo of China's financial exclusion and promoting social and economic development and the improvement of residents' income.This paper firstly uses China's 2005-2016 31 provinces and cities(excluding Hong Kong,Macao and Taiwan)to construct China's Financial Exclusion Index(IFE),and conducts quantitative and qualitative analysis.It can be found that the overall degree of financial exclusion in China is relatively serious during the sample period.With the continuous development and progress of China's economic level,financial exclusion has gradually eased and improved,but at the same time the regional financial exclusion gap is large.Secondly,the panel data model is constructed to empirically analyze the income effects of financial exclusion from the macro and micro dimensions,namely the impact of financial exclusion on China's economic growth and the impact on the income growth of Chinese residents.The empirical results show that:(1)At the national and eastern and western regions,the degree of financial exclusion is negatively correlated with economic development;for the central region,the degree of financial exclusion has a positive impact on economic growth.In addition,the two factors of capital input and labor input have positive effects on the economic growth of the country and the three major regions;(2)Financial exclusion has increased the income of residents in the whole country and the eastern,central and western regions.Has a negative impact.The two indicators of per capita GDP and per capita household savings balance have a significant positive for the overall and regional residents' income,while the urbanization rate has a negative impact on the overall and regional residents' income.Therefore,to crack the phenomenon of financial exclusion,we must adapt local conditions and strengthen regional cooperation,give full play to the synergy between the government,financial institutions and resident enterprises,so as to effectively connect supply and demand,rational balance between government and market,and symbiosis between finance and economic society.