The Influence Of Credit Exclusion On The Subjective Well-being Of Rural Residents On The Basis Of Supply And Demand

As the development of society,people have higher standard on life and subjective well-being is gradually becoming an important indicator of people’s livelihood.Inclusive finance plays a great role in increasing people’s welfare and improve their life quality.Finance is an important economic element for rural residents’ welfare,which should be included in the range of the influence factors of subjective well-being.Developing-countries including China exists serious financial repression and rural residents suffer severe credit exclusion,which is the main financial exclusion.The credit exclusion is not only derive from the supplies,but also from the demand side,in other words,the rural people themselves.This passage is mainly writes the influence of credit exclusion on rural residents’ subjective well-being on the basis of supply and demand.Happiness is a judgement about current life to oneself,directly expresses his or her satisfaction towards life,and it is a comprehensive index,which measures the emotional feedback on the living actuality for a long time.Poor farmers,the vulnerable groups,whose happiness is one important part of the whole country happiness level,so,it is necessary to improve rural population’s happiness.However,most developing countries,including China,exist serious financial repression,which hinders the economical development of rural area and results in severe credit exclusion.This is not only derive from the insufficient formal finance,but also the demand.The credit exclusion has a great influence on their happiness and different credit exclusion effects people in a different level.Therefore,this passage with the aim of improving rural residents’ happiness exists theoretical and realistic meaning from the view of credit exclusion.This passage use the data from CPFS and use ordered probit model to examine the effects of credit exclusion on the rural people’s subjective well-being by PSM.It founds credit exclusion has a negative effect on rural residents’ happiness,which is the result of the whole sample,the effect from supplied credit exclusion bigger than from demanded credit exclusion.But we get different results by deviding two different groups on the basis of individual character,such as income and schooling,we found demanded credit exclusion still has a minus effect on lower-income people’s happiness,on the contrast,a plus effect on the higher-income people’s happiness.Besides,the negative influence of more-schooling people’s happiness from demanded credit exclusion is not significant.As the basis of above demonstration,this passage recommend as follows:(1)we should vigorously developing inclusive finance and encourage the reform the rural financial system;(2)improving people’s financial knowledge;(3)guiding informal finance to the more standardized formal-finance to increase people’s financing channels;(4)encouraging formal finance to innovate to adapt rural residents’ financial demand.