Research On The Influence Of Inclusive Finance Development On Economic Growth In China

inclusive financial this concept in 2005 by the United Nations official is put forward,then cause the attention of relevant scholars at home and abroad and the research in our country’s economy development background,inclusive finance study the relationship between financial development and the real economy has become a hot issue in recent years,the government also emphasized to develop the inclusive finance,and further to inclusive finance into the national strategic plan,improve the level of inclusive finance has the vital significance to promote regional economic development,we should focus on the question of difference in regional economic development in our country,and adopt corresponding measures to make the inclusive finance development better serve the real economyIn this paper,In this paper,the connotation of inclusive finance,the construction of inclusive finance index system,and the impact of inclusive finance on economic growth are firstly analyzed from the perspective of domestic and foreign researches,the service objects and nature of inclusive finance are explained,and the relevant factors affecting inclusive finance are introduced.Secondly,the paper introduces the current situation of inclusive finance and the theory of economic growth in China.In recent years,the economic development is on the rise,the economic growth rate is slowed down,and the goal is to pursue higher quality economic growth.It is worth studying the impact of inclusive financial development on economic growth and the depth of the impact.The early development of inclusive finance in China,in the form of micro-credit and micro-finance,was formed in the process of long-term and dynamic development.In different stages of China’s economic development,policies to provide financial services needed by low-income groups have played an important role in the economic development in different periods.From the perspective of enriching financial products,promoting scientific and technological innovation and promoting social equity,this paper theoretically analyzes how financial inclusion affects economic growth.In measuring inclusive finance development index,this article from financial services universality,usage,financial business,insurance business is four dimensions chosen nine indicators,using the factor analysis objectively reflect China’s 31 provinces and cities inclusive financial development present situation,the results show that in 2018,Beijing,Shanghai,zhejiang and other areas of inclusive finance development level is higher,guizhou,guangxi,yunnan and other regions is low.The same method was used for data of other years to obtain the financial inclusion development index of various provinces and cities from 2010 to 2018.Finally,the panel regression model is constructed by using the financial inclusion index obtained above to analyze the influence of financial inclusion development on economic growth and explore the strategies and methods for financial inclusion development to better promote economic growth.Through the research,it is found that the development of inclusive finance in various provinces and cities in China is unbalanced,and inclusive finance has a significant positive impact on the economic growth of China to some extent.For the panel linear regression model,when the financial inclusion index increases by 1 unit,the regional economic growth rate is 2.65%,which indicates that the development of financial inclusion plays a certain role in promoting the regional economic growth in China.In terms of the effect,there is still a lot of room for improvement.For the panel threshold regression model,inclusive finance does have a threshold effect on economic growth.When the development level of inclusive finance is lower than 0.6633,the promotion effect is not significant.When the level of financial development is greater than 0.6633 and less than 0.9951,the regression coefficient is 0.076,which is significant at the 1% significant level,indicating that the development of inclusive finance plays a promoting role in economic growth.When the level of financial development is greater than 0.9951,the regression coefficient is 0.0021,indicating that the development of inclusive finance has a significant positive effect on economic growth,but the promotion effect is reduced.From the regression results of the model,different development degrees of inclusive finance have different effects on economic growth.As the development degree of inclusive finance increases,its promoting effect on the economy changes from strong to weak,showing a trend of diminishing marginal benefits.Based on the above theoretical and empirical results,combined with the current situation of China’s development,this paper analyzes the reasons for the effect of inclusive finance on promoting economic growth in different stages of development from a practical perspective.From the analysis of the results and causes,this paper puts forward some Suggestions to make inclusive finance better develop economy: first,improve the financial quality of the poor people,take the initiative to learn financial knowledge,and conform to the trend of economic development in the new era.Second,we will promote the establishment of a database of inclusive finance in line with China’s national conditions,improve the system of indicators for inclusive finance,and provide support for government work and academic research.Third,according to the development needs of various regions in China,different inclusive financial development strategies should be formulated,emphasis should be placed on financial innovation,the quality of financial services should be improved,and inclusive financial development should effectively serve the people’s life.