An Empirical Study Of Comprehensive Inclusive Finance And China's Urban-rural Income Gap

Since the Reform and Opening Up,China's economy has developed rapidly,and its economic volume has leapt to the second place in the world.At the same time,Long-term uneven distribution of resources is leading to The urban-rural income gap continues to widen.Developing inclusive finance is an important development strategy for China.The focus of this paper is that if the development of Comprehensive Inclusive Finance is beneficial to narrowing the gap between urban and rural incomes and maintaining social harmony and stability.First,We sort out the existing literature on inclusive financial research,and organized the development of inclusive finance at home and abroad,Summed the practical significance of developing inclusive finance to alleviate financial exclusion and increase the income of long-tail customers,fined specific indicators affecting the development of inclusive finance.The main research contents of this paper are constructing Comprehensive Inclusive Finance Indices by Coefficient of variation and Entropy method;measuring China's provincial-level urban-rural income gap by the ratio of per capita disposable income of urban residents to per capita disposable income of rural residents.Then We provided three research hypotheses.The main findings of this paper are as follows: The Comprehensive Inclusive Finance level of all provinces in China has been greatly improved between 2011 and 2017;about urban and rural income gap,the income gap between urban and rural areas in all provinces has slightly decreased.Empirical research results show that the development of Comprehensive Inclusive Finance does have a significant positive effect on narrowing the urban-rural income gap after controlling other variables that affect the urban-rural income gap.Further research findings that the positive effect of digital inclusive finance on narrowing urban-rural income gap is significantly better than traditional inclusive finance;and the impact of the development of comprehensive inclusive finance on the urban-rural income gap is quite different in different areas,specifically the western region is better than the central region and the central region is better than the eastern region.In the current and future for a long time,the development of inclusive finance is an important direction of China's financial reform and development.Through the development in recent years,China's inclusive financial construction has achieved initial results.However,the issue of financial discrimination and regional differences still clearly exist,and the development of inclusive finance has a long way to go.This paper argues that policy makers should make full use of the outstanding advantages of inclusive finance in narrowing the income gap between urban and rural areas.In particular,Digital Inclusive Finance can greatly break through personnel restrictions and geographical restrictions,maximize access to users,personalize customized financial products and services,and tap the long tail market.Then we must actively promote financial reforms and improve the top-level design of inclusive financial development.Finally,promote inter-agency data exchange and sharing,and accelerate the construction of an inclusive financial indicator system that is in line with the development characteristics of China's inclusive finance.Finally,China has not yet formed a unified indicator system for measuring the development stage of inclusive finance.Due to restrictions on data acquisition,there are major obstacles to the in-depth study of inclusive finance related issues.The state should promote research on inclusive financial indices.