An Empirical Study On The Impact Of Inclusive Financial Development On Farmers’ Income

At present,the lack of financial support in the vast rural areas has become an important factor restricting the development of rural areas,and the appearance of inclusive finance just makes up for the deficiency in rural financial development,which makes the vulnerable groups have more opportunities to obtain financial services,thus contributing to rural economic growth.On the other hand,when investigating the level of rural economic development,the income level of rural families is often regarded as the core evaluation index.Whether inclusive finance can achieve the goal of increasing farmers’ income still needs further study.This paper tries to analyze inclusive finance,reveal its operating mechanism,and then explore new impetus for farmers to achieve the goal of increasing income.Based on the data of inclusive finance’s development and farmers’ income in31provinces(cities,districts)in China from 2011 to 2020,this paper analyzes the influence of inclusive finance’s development on rural residents’ income level from the national level and the eastern,central and western regions,and discusses the heterogeneity of regional and income levels.The main conclusions of this paper are as follows: First,the development of inclusive finance has a significant positive impact on the income of rural residents.Nationwide,inclusive finance has played a role in poverty reduction and has a positive effect on farmers’ income.Secondly,the development of inclusive finance can affect farmers’ income through the effect of technological progress and social development,but the effect of economic growth has not been verified.Thirdly,the development of inclusive finance has a threshold effect on increasing farmers’ income.When the regional inclusive finance development index jumps over a value,its role in promoting farmers’ income will be more obvious.Fourthly,the promotion effect of the development of inclusive finance on farmers’ income in the central provinces of China is relatively higher than that in the eastern and western regions;Compared with high-income groups,the development of inclusive finance has a significantly higher role in promoting the income of low-income groups.This paper not only analyzes the relationship between the development of Inclusive Finance in rural areas and farmers’ income,summarizes the relevant theories of Inclusive Finance and rural residents’ income,but also analyzes how inclusive finance plays a role in increasing farmers’ income.Then,using the empirical model,this paper analyzes the impact of Inclusive Financial Development on the increase of rural residents’ income,which provides an important theoretical basis for improving the income of farmers in China.At the same time,it also provides an important reference for the provinces(cities,districts)in the whole country on the development of Inclusive Finance to improve farmers’ income.