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

China has completed the building of a moderately prosperous society in all respects by 2020,a great victory in the battle against poverty.The first centenary goal has been achieved.Although people’s well-being has been greatly improved,people’s income has also seen steady growth.However,there is still a large gap in income between urban and rural areas,regions and different groups of residents.The report to the Party’s 20 th National Congress made it clear that one of the overall strategies for building China into a great modern socialist country in all respects is to basically realize socialist modernization by 2035.We will improve the income distribution system,make it more balanced and accessible,and take solid steps to achieve common prosperity.Among them,the central region,which includes Jiangxi,Hunan,Hubei,Shanxi,Henan and Anhui provinces,has achieved the goal of rapid economic development since the implementation of the "Strategy for the rise of the Central Region" in 2003.At the same time,the per capita disposable income ratio of urban and rural residents is still relatively large,and the problem of urban-rural income gap still exists.Compared with the eastern coastal areas there is still a large gap.Therefore,focusing on narrowing the income gap between urban and rural areas,eliminating the dual structure between urban and rural areas and realizing coordinated development between urban and rural areas is a key problem needed to be solved in the middle region of China.Due to the disadvantages that traditional finance attaches great importance to service depth and capital accumulation while neglecting the breadth,it can not make the disadvantaged groups and low-income people enjoy equal financial services while serving the overall situation of social and economic development,which leads to the widening of the urban-rural income gap.The inclusive finance expands the breadth and depth of financial services,exactly makes up for the shortcomings of traditional finance,which points out the direction for solving problems such as the excessive urban-rural income gap.This paper takes six provinces in central China as the research object to explore the relationship between inclusive finance and the income gap between urban and rural residents,which is conducive to the realization of common prosperity and the realization of the long-term goal of socialist modernization by 2035.This paper is divided into five parts.The first part is the research background and significance of the article are elaborated accordingly.Secondly,the definition of inclusive finance at home and abroad,research on the index system of inclusive finance,and the relationship between inclusive finance and urban-rural income gap are summarized.The second part is the mechanism of the impact of inclusive finance on the income gap between urban and rural residents.It includes the theory of financial inclusion and the transmission mechanism of urban-rural income gap.The third part mainly describes the status quo of inclusive financial development and income gap between urban and rural residents in six central provinces.The fourth part is the empirical test to further quantify and clarify the inhibitory effect of inclusive finance on the urban-rural income gap.The fifth part is the policy suggestions for narrowing the urban-rural income gap and improving the development level of inclusive finance in six central provinces based on the theoretical and empirical analysis.The research shows that :(1)the development level of inclusive finance in the six central provinces has been improved to different degrees from 2011 to 2020,but there are big differences among provinces.(2)From 2011 to 2020,the income gap between urban and rural residents in the six central provinces showed a trend of narrowing,but the gap was still large compared with the eastern coastal areas.(3)The development of inclusive finance can effectively restrain the widening of the income gap between urban and rural residents.For every unit of development of inclusive finance,the urban-rural income gap can be reversed by 0.082 units.(4)In different stages of economic development,inclusive finance will have different impacts on the urban-rural income gap.(5)Inclusive finance can indirectly narrow the income gap between urban and rural residents by increasing per capita disposable income,that is,the development of inclusive finance has a "mediating effect" on the urban-rural income gap.