Research On The Sustainable Development And Economic Effects Of Inclusive Finance In China

In recent years,more and more studies and realities show that the problem of gap between rich and poor around the world is still one of the major challenges which mankind will continue to face in the 21 st century,it is under this background that inclusive finance has been raised and widely concerned,and also indicates that the inclusive finance is of great significance to promote the unification of efficiency and fairness in the long run.China is an active practitioner of inclusive finance for a long time,as early as before the founding of new China,rural credit cooperatives had already abounded.At present our country has preliminary built up a complete set of inclusive financial organization system,which is covering urban and rural areas,full participation and each performing its own functions,a 2014 report published by World Bank shows that the development of inclusive finance in China had reached the middle or upper middle level on the transverse comparison."Develop inclusive finance" has been written into The Decision of the Central Committee of the CPC on Some Major Issues Concerning Comprehensively Deepening the Reform released by the third Plenary Session of the 18 th Central Committee of the CPC,and has been included in the outline of the national "13th five-year" plan,the support policies have also been issued,inclusive finance has become one of the hot topics in research and practice.However,under the condition of the market economy,any economic activity should follow the objective law.In practice,the development of inclusive finance has achieved remarkable results,but it also shows many problems,which make inclusive finance bring negative effects and even worries.In view of this,some basic problems deserve attention: how to scientifically define and evaluate the development of inclusive finance,what function and influence does it have on economic and social development exactly,how its positive and negative economic effects are achieved,how to realize its long-term development better.These problems essentially involve its developmental sustainability,this article will study this problem mainly from the "macro" : through comprehendsive studying its essence and connotation,economic effect and its realization paths,probing into the theoretical connotation and practical significance of sustainable development of inclusive finance,from two aspects of theoretical analysis and empirical test,demonstrate the core idea that the development of inclusive financial needs to always adhere to the principle of sustainable development,and try to measure the sustainable development of inclusive finance in China,provide a theoretical basis and policy suggestions for the sustainable development of inclusive finance.The specific structure is as follows:First,in the aspect of theoretical deduction,through reviewing the literature,we find that the study of inclusive finance's essence and connotation is still not enough,lacking of insights on how to develop it better.So,in the chapter 3,we explore the issues that What is the inclusive finance? and What is the sustainable development of inclusive finance? Then from multiple perspectives demonstrate that inclusive finance should adhere to sustainable development,summarize its concentration field.Through these analysis,this article concludes the following basic points in theory: inclusiveness is an inherent nature of financial activities,is the foundation of cognizing inclusive finance scientifically,developing inclusive finance must fully consider its objectivity,moderation and other basic features;nowadays,inclusive finance is of great significance for realizing efficiency and fairness simultaneously in the first distribution,which makes inclusive finance reflects the sustainable development of economy and society in essence;the basic views of financial resource theory are also applicable to inclusive finance,to develop it,we should pay attention to the rational development and effective allocation of each level's financial resources at the same time.From different perspectives,the above analysis show that developing inclusive finance needs to adhere to the principle of sustainable development always.Secondly,in the aspect of empirical test,on the basis of summarizing the development status and problems at home and abroad,the chapter 4,from current situation analysis to economic effect analysis,studies the positive and negative economic effects and their generation paths systematically,points out the realistic pertinence,explains the theoretical connotation of the empirical test proposition.Baseing on the author's long-term observation and summary in practice,in view of the realistic characteristics of the investment and financing system in China(for example,the policy finance has obvious function and relatively unique operating systems),the chapter 5 tries to improve the index evaluation system of the "imported",and measures the IFI of 31 provinces from 2000 to 2016,then builds the fixed effect and dynamic panel data model for test.Results show that there is a significant inverted "U" relationship between inclusive finance and economic development in China,positive and negative effects exist at the same time,SYS-GMM's results also show that China's development of inclusive finance is still on the left side of the optimal solution,but the positive effect is reducing,means that there is still some space for its development in China,meanwhile,the problem of its sustainable development is becoming increasingly urgent.Further more,the chapter 6 selects one of the economic effect generation paths for test,by acting on the whole development of financial industry to affect the economic development,measures the provincial development situations of the financial industry from 2000 to 2016,then builds panel data model to prove the significant inverted "U" relationship between both.At the end of chapter 5 and 6,this paper tries to estimate the situation of sustainable development of inclusive finance in China.Chapter 7 is the main conclusions and recommendations.The main innovation of this paper lies in:(1)For the first time systemically proposes and studies the issue of sustainable development of inclusive finance,defines the connotation of sustainable development of inclusive finance in theory,seriously interprets the financial inclusiveness and the essence of inclusive finance,through combing current status and problems in details,for the first time puts forward the different generation paths of positive and negative economic effects;(2)For the first time systemically measures the situation of the sustainable development of inclusive finance in China,proves the inverted "U" relationship between inclusive finance and economic development in China,and basing on the generation paths of economic effects in this paper,for the first time empirically studies the relationship between inclusive finance and overall development of the financial industry,expand the research scope in this field.(3)according to the realistic characteristics of China's investment and financing system,points out that the current evaluation index system could lead to serious deviation(for example,the level of loans for shantytowns may be lower than commercial mortgages),because of neglecting that the financial inclusiveness is significant different among diverse financial activities,and tries to improve,gets the longest-running regional IFI measured results among the current domestic similar researches;But considering the related researches have just started,the depth of this paper in some aspects is still insufficient,limited to data availability,measurement and empirical studies are still not comprehensive,hoping to be improved in future studies.