The Research On The Economic Effects Of Provincial Inclusive Finance In China

Over the past 10 years,China has ma de tremendous progress in the constructio n of inclusive finance,including the establishment of sound financial infrastructure,funds flows safely and efficient ly among individuals,enterprises and governments,the establishment of the world's largest netw ork of agency services,which improved the permeability of inclusive finance tremendously.Inclusive finance played a huge role in solving the "agriculture,farmer and rural areas" and the financing difficulties of small and medium-sized enterprises.Academically,there are many research concerning inclusive finance.As a measure of the breadth of financial development,the study on the impact of inclusive finance on economic growth has aroused the interest of many scholars.This paper selects the panel data of 31 provinces of China in 2005-2017,establishes the evaluation index system of inclusive finance,uses the whole sequence method to process the original data in an innovative way,uses the entropy weight method to determine the weights of each index and each dimension,and finally synthesizes the inclusive financial index of each provin ce.After analyse the inclusive financial index in China's provinces,it is concluded that,from the overall trend,the level of inclusive financial index of all regions of China are steadily rising.At present,the highest province is Beijing while the lowest one is Guangxi.From the regional differences,the highest region is eastern part of China and the central region is slightly inferior to the western region.In the empirical analysis,this paper estimates from two aspects: static panel and dynamic panel,and the static panel regression results show that inclusive financia l has a significant positive impact on economic growth,namely,1% increase in the inclusive financial index can increase per capita GDP by 1.504%.The results o f dynamic panel regression also support the conclusion that the impact of inclusive finance on economic growth is significantly positive.After grouping the samples by region and dimension,it is further found that inclusive finance in the eastern and western regions has a significant positive impact on economic growth in a different way,the development of inclusive finance in the western region has the greatest contribution to economic growth,while the middle region has slightest contribution to economic growth;Three classification dimensions of inclusive finance index stimulate economic growth differently,with the contribution of three classificatio n indices from large to small is permeable index,availability index and use utility index.Based on the results of theoretical analysis and empirical analysis,this paper proposes policy recommendations from two aspects: improving the level of inclusive finance and exerting the economic effect of inclusive finance.In terms of improving the level of inclusive finance: strengthening the banking industry to promote the development of inclusive finance;improving financial infrastructure;establishing an inclusive financial concept which can keeps pace with the times;the central regio n should pay more attention to the development of inclusive finance.In the aspect of exerting the economic effect of inclusive finance: pay more attention to the the positive role of the new rural financial service providers,internet finance as well as the guiding role of policies.