An Empirical Study On The Impact Of Inclusive Finance On Urban-Rural Income GAP In The Pearl River-Xijiang Economic Belt

The income gap between urban and rural areas in China has always been the focus of attention.Since the reform and opening up,China's urban-rural dual economic pattern has become increasingly fierce,leading to a widening income gap between urban residents,to a certain extent,affecting the harmonious development of the economy and society.As an important factor affecting the income gap between urban and rural areas,finance has gradually entered the public's vision in recent years.Inclusive finance is a financial concept serving various social groups.Promoting Inclusive Finance combined with modern technology,such as sharing,Internet + and so on,will expand the breadth of inclusive financial services and achieve common development.This will help improve China's poverty problem,narrow the income gap between urban and rural areas and achieve common prosperity.As for the impact of Inclusive Financial Development on urban-rural income gap,some scholars believe that financial development will widen the gap between rich and poor;some scholars believe that financial development will narrow the gap between urban and rural income.The mechanism of Inclusive Finance affecting urban and rural income distribution can be analyzed from both direct and indirect aspects.The direct impact is manifested in three aspects: the development of Inclusive Finance can reduce the threshold for vulnerable groups to purchase financial products and enjoy financial services;promote finance as a means to poor areas and provide certain financial services to enhance its poverty reduction effect;change the traditional allocation of financial resources,and promote financial resources to poor farmers to alleviate the imbalance effect.The indirect effect is reflected by the influence of financial development on economic growth,thereby affecting income distribution and changing the income gap between urban and rural areas.Taking 11 cities in the Pearl River-Xijiang Economic Belt as the main body,this paper collects financial and income data from 2011 to 2016,constructs inclusive financial index from the penetration and utility of financial services,and the penetration is divided into geographical and population penetration,and then determines the weight of geography,population penetration and use effectiveness according to the coefficient of variation method,in order to construct the index system of research.Although the overall Inclusive Finance in the Pearl River-Xijiang Economic Belt is growing every year,the standard deviation is also changing,which shows that the trend of the overall Inclusive Finance is not getting better and better.Although the income gap between urban and rural areas is also narrowing,but because the overall gap is too large,the increase of growth rate can not bring about the reduction of the actual gap.Through the analysis of the current situation,we can see that the overall situation of the Pearl River-Xijiang Economic Belt is not good,so we use regression model and SDM model to analyze the impact of Inclusive Financial Development on urban and rural income in the Pearl RiverXijiang Economic Belt from the time and space dimensions.Empirical results show that the development of Inclusive Finance in the Pearl River-Xijiang Economic Belt will narrow the income gap between urban and rural areas,and has a high significance;the IFI and urban and rural incomes in the cities of the Pearl River-Xijiang Economic Belt have a certain spatial correlation,and there are spillover effects among cities at the same time,which are positive;the overall development of Inclusive Finance in the Pearl River-Xijiang Economic Belt can improve the situation of urban and rural incomes,but in the Pearl River-Xijiang Economic At the level of Pearl River-Xijiang Economic Belt,there is inconsistent relationship,and there may be a "U" type relationship.The development of Inclusive Finance in the Pearl River-Xijiang Economic Belt can improve urban and rural income in spatial geography,and the financial development of surrounding cities can affect the income gap between urban and rural areas,but not obvious.In view of the present situation and empirical results,this paper puts forward some suggestions from the macro,meso,micro,construction of inclusive financial index and spatial interaction: promoting the deployment of inclusive financial development strategy by providing diversified financial services and improving the relevant system construction,increasing the government's financial investment;innovating financial institutions' products,expanding the scale of inclusive finance,and building inclusive financial institutions.To promote rural economic growth,strengthen the construction of financial facilities in backward areas,balance the allocation of financial resources,and pay attention to the spatial interaction between cities,so as to improve the income gap between urban and rural areas.