Research On The Impact Of Inclusive Finance On Farmer's Income

Inclusive Finance is born out of microfinance and microfinance,and aims to provide appropriate and effective financial services for vulnerable groups excluded by traditional finance,such as small and micro enterprises,farmers,and urban low-income people with financial needs,at affordable costs.This will help economic development in rural areas,ease the contradiction between financial supply and demand,and increase farmers' income.Since the reform and opening up,China's economy has developed rapidly,and farmers' incomes have increased rapidly.But at the same time,the urban-rural income gap still exists,and rural economic development is relatively weak.Under the requirements of achieving the two strategic goals of "building a well-off society in an all-round way" and "fighting the battle against poverty",how to promote the high-quality growth of farmers' income has become the research focus of academia.It is of great significance to grasp the status quo of China's inclusive finance development and analyze whether the effect of inclusive finance on farmers' income is mainly through agricultural channels or non-agricultural channels.Based on the relevant theories of inclusive finance and farmers' income,this paper refers to relevant research at home and abroad,and on the basis of combining with the development of inclusive finance in China,selects three dimensions of financial service availability,use status and service quality.An indicator measures the level of inclusive financial development in China from 2006 to 2018,and uses the standardized Euclidean distance formula to calculate the inclusive financial development index(IFI);based on the 2006-2018 inclusive financial development index,agricultural income and non-agricultural income inter-provincial panel Data,using panel VAR model to empirically analyze the impact of inclusive financial development on farmers' agricultural income and non-agricultural income.The research results show that:(1)The level of inclusive finance construction in China is developing rapidly,but the overall construction level is relatively low.Except for Shanghai and Beijing,the current stage of inclusive financial development in various provinces is still at a low to medium level,and the level of inclusive financial development in economically developed areas is generally higher than that in economically underdeveloped areas.(2)According to the statistical analysis of agricultural income and non-agricultural income of farmers in various provinces,the growth rate of non-agricultural income in most areas is greater than that of agricultural income.The areas with agricultural income lower than non-agricultural income are mainly concentrated in eastern and central China.Most of the income areas are located in the west of China.(3)Inclusive finance is an important factor to promote the increase of agricultural income.Specifically,inclusive finance and agricultural income are a two-way causal relationship.In the short term,inclusive finance has a significant positive impact on agricultural income.The contribution of agricultural income fluctuations is high.(4)Inclusive finance is a factor that causes farmers' income to fluctuate,but the impact is not significant.Specifically,inclusive finance and non-agricultural income are a two-way causal relationship.Inclusive finance has a significant positive impact on farmers' non-agricultural income in the short term,but the long-term impact is not significant.Inclusive financial shocks contributed little to non-agricultural income fluctuations.The above conclusions have obvious policy implications: first,the inclusive financial system should be used to support agricultural production;second,the inclusive financial system should be used to support rural non-agricultural industries flexibly;third,the rural financial infrastructure and legal system should be improved,Promote the construction of inclusive financial systems.