The Impact Of Inclusive Finance On The Income Gap Between Urban And Rural Residents In China

Inclusive Finance is an important measure to deepen financial reform in China.How to achieve sustainable and feasible development of Inclusive Finance with appropriate profit and low cost is the main problem we are facing.Of course,the ultimate goal of Inclusive Finance is to make the rain and dew equally,promote the common development of urban and rural areas,and achieve a comprehensive well-off society.For this reason,this paper collects and calculates relevant data from 2005 to 2018,calculates the inclusive financial development index(IFI),Theil index(TI)and urban-rural income ratio(GAP)of all provinces(cities and autonomous regions)in China,conducts cluster analysis on the current situation of inclusive financial development and urban-rural income gap in 2018,and conducts panel unit root test and panel co integration test on relevant indicators On this basis,the panel regression model is constructed.Based on the above analysis,the following conclusions are drawn: first,the cluster analysis of urban-rural income gap shows that: in 2018,there are 6 regions with high gap,maintaining at around 3.13,25 regions with medium gap and low gap,maintaining at around 2.42;second,the results of inclusive financial measurement show that: in the vertical direction,the level of inclusive financial in all provinces and cities shows a different degree of upward trend,but the growth rate is relatively small;horizontally: from the cluster analysis results of Inclusive Finance,it can be seen that in 2018,IFI in most regions of China was in the range of(0.2,0.5),which was in the middle development level of Inclusive Finance.Two regions had IFI less than 0.2,which was in the low development level of Inclusive Finance.Thirdly,the empirical results show that every 1% increase in Inclusive Finance,the urban-rural income gap decreased by 0.137%.The improvement of inclusive financial development level,economic development level and urbanization rate can narrow the income gap between urban and rural areas,but the proportion of government expenditure and the improvement of industrial structure cannot narrow the income gap between urban and rural areas.Therefore,China still needs to strengthen the development of Inclusive Finance and improve the imbalance of urban and rural income distribution.