Research On The Impact Of Inclusive Finance On The Urban-rural Income Gap

According to the report of the 19 th National Congress of the Communist Party of China,we should resolutely fight against and resolve major risks,get rid of poverty accurately,and prevent and control pollution.To get rid of poverty in an all-round way is a hard index to measure a well-off society in an all-round way.To get rid of poverty precisely is a key link and one of the most arduous tasks in the process of building a well-off society in an all-round way.Finance is the core of modern economy and the blood of real economy.It is an effective way to win the battle of poverty alleviation to help the poor get rid of poverty through financial means.Inclusive finance can expand the financial boundary to the greatest extent,improve the coverage of financial services,effectively alleviate the rural funding gap and financial constraints,and then narrow the income gap between urban and rural areas,providing strong support for achieving accurate poverty alleviation.From the perspective of Shandong Province,this paper analyzes the current situation of Inclusive Finance in Shandong Province,and measures the level of Inclusive Finance and urban-rural income.Based on this,it focuses on the impact of the development of Inclusive Finance on the urban-rural income gap in Shandong Province through theoretical and empirical means.In theory,inclusive finance reduces the gap between the rich and the poor in urban and rural areas by reducing the threshold effect,eliminating the exclusion effect,reducing the direct mechanism of poverty effect,and promoting the indirect mechanism of economic growth and poverty alleviation.In the empirical part,based on the panel data of 86 counties from 2012 to 2017,a systematic GMM model is constructed to analyze the direct effect and indirect mechanism.The results show that the development of Inclusive Finance at the provincial level can not only directly curb the expansion of the income gap between urban and rural areas,but also indirectly reduce the income gap between urban and rural areas through economic growth and poverty alleviation.However,in the sub regional analysis,the development of Inclusive Finance in eastern Shandong and Northern Shandong has significantly reduced the income gap between urban and rural areas.Due to the relatively backward economic development in central Shandong and southern Shandong,the poor and other vulnerable groups can enjoy less financial services,so inclusive finance can not curb the trend of income gap expansion.Based on the research conclusion,the paper puts forward the following policy suggestions: promote the construction of financial infrastructure,promote the balanced allocation of financial resources;strengthen the implementation ofinclusive financial policies and policy guidance,play a good role in policy guidance and incentive;implement targeted regional financial policies,pay attention to the development of financial regionalization;promote the collaborative poverty reduction of direct mechanism and indirect mechanism,play a role in reducing urban and rural income The role of gap.