An Empirical Study On The Impact Of Inclusive Financial Development On The Welfare Difference Between Urban And Rural Residents

In recent years,GDP level in all provinces has maintained a stable growth rate,which benefits and quality of economic growth have been improved continuously.With the development of global information and communication technology and the popularization of the Internet,the emergence of Internet finance can meet the financial service needs of the majority of the world's population.Although China promotes the process of urban and rural integrated development vigorously,the financial development level of each province in China still presents the phenomenon of regional imbalance,and the groups in remote areas are still subject to different degrees of Financial Exclusion,and some regions are still facing a relatively high level of financial exclusion.In order to solve the problem of urban-rural dual finance,financial institutions and a large number of funds withdraw from the backward central and western regions,and flow to the eastern regions or the more developed regions.There are a lots of financial service blank areas in some regions,and the vulnerable groups are excluded from the existing financial system passively,which will inevitably lead to the further deepening of the gap between the urban and rural residents.The phenomenon affects the level of residents' social welfare,and then restricts the economic and social development of our country.This paper argues that the development of Inclusive Finance aims to ensure that all groups in the economy are able to have fair,effective and low-cost accesses to all-round diversified financial services.Financial development should be inclusive to all regions and groups of all levels,so that all financial demanders can enjoy the benefits brought by financial services equally and effectively.Therefore,this paper takes it as a starting point,based on the theory of financial development,fully drawing on the existing research results,considering the current actual situation of China's development,combining theory with practice,from the theoretical level,current situation analysis,empirical research three aspects to study the impact of GDP financial development level on the welfare differences between urban and rural residents.Firstly,in the part of theoretical analysis,this paper expounds the theoretical basis and welfare economics of Inclusive Finance,and through further exploration,it can be concluded that the development of Inclusive Finance will directly affect residents' income,consumption and quality of life through threshold effect,poverty reduction effect and inclusive effect,while "trickle down effect" will produce on Residents' social welfare level through economic growth as the intermediary transmission Indirect influence,its effect will be restricted by other external conditions such as economic level and social development status.Secondly,in the current situation analysis part,this paper uses the data of 2006-2017 to build inclusive financial evaluation indexes from two dimensions of financial service permeability and applicability,seven indexes from two aspects of residents' economic structure and quality of life,and uses an improved analytic hierarchy process which is Cov-AHP method to calculate the weight of each index.During the year,the inclusive financial development index(IFI)and gap are subjected to be measured mathematically,and the development status and gap of different regions in China are compared and analyzed through horizontal and vertical dimensions.From 2006 to 2017,the development level of Inclusive Finance in China has steadily improved,but the welfare gap between urban and rural residents is also gradually expanding.According to the analysis of provincial data calculation results,the level of inclusive financial development in the eastern region of China is much higher than that in the center and the west.At the same time,the welfare gap between urban and rural residents in the eastern region and the center is large.Thirdly,in the part of empirical analysis,this paper uses the threshold effect model,taking the level of urbanization as the threshold variable value,from the data analysis at the national level,it shows that the impact of Inclusive Financial Development on the welfare difference between urban and rural residents has a double threshold effect,and in different stages of economic development,inclusive financial development can reduce the welfare gap between urban and rural residents to varying degrees.From the regional level of the East,the central and western regions,the convergence effect of Inclusive Finance on the welfare gap between urban and rural residents still exists,the eastern region has a double threshold effect,the central and western regions are simple linear relationship,and the convergence effect of the central region is far higher than the east and the west.In this paper,when the threshold variable value is transferred to PGDP,there is still a double threshold effect between them.Most provinces in China have crossed the first threshold and entered the second economic development zone.The convergence effect is significant,which further confirms the robustness of the results.Finally,based on the research results,this paper puts forward several policy suggestions to narrow the gap between social welfare of urban and rural region and improve the level of inclusive finance.First,improve the penetration rate of financial services and provide diversified financial service products.Second,we need to implement different regional strategies for the development of inclusive finance.Third,we are supposed to accelerate the coordinated development of urban and rural areas,focus on issues concerning agriculture,rural areas and farmers,and raise the level of social welfare for rural residents.