The Research On Financial Inclusion And Inclusive Economic Growth In China

The report of the 19 th national congress of the communist party of China(CPC)pointed out that China's economy has shifted from a stage of high-speed growth to a stage of high-quality development.In this context,whether social members can participate in the economic growth process equally and extensively,and whether social members can share the dividend of economic growth is one of the main dimensions to examine the quality of economic development.At its core,inclusive economic growth advocates equality of opportunity and maximizes job creation,which is consistent with the main features of high-quality economic development.Therefore,achieving inclusive economic growth has become an important goal of China's economic development in the current and future for a long period of time.As the core of modern economic development,the significant role of finance in promoting economic growth has been widely demonstrated,but its impact on poverty,inequality and employment remains controversial.Financial inclusion and inclusive economic growth share the same concept—inclusive.Can inclusive economic growth be achieved by building an inclusive financial system? At present,there is no unified concept and relatively mature theoretical framework for financial inclusion and inclusive economic growth.Therefore,to solve this problem,it is necessary to conduct in-depth research based on China's actual national conditions.In view of this,on the basis of fully combing and refering the research achievements at home and abroad,this artical measures financial inclusion and inclusive economic growth respectively from the Angle of efficiency and income,which can be considered as a break-through point.Using a variety of econometric models,this article empirically studies the problems of the two-way relationship between financial inclusion and inclusive economic growth,their underlying logical mechanisms,and so on.The specific research content,research methods and main conclusions are as follows:First of all,on the basis of measuring financial inclusion and inclusive economic growth,this article uses panel vector autoregressive model(PVAR)to identify the two-way relationship between them,and then use a mediation effect model to examine the mediation effect of poverty,inequality and employment in the progress of financial inclusion affecting inclusive economic growth.Results are as follows:(1)In the period of 2006 to 2016,the efficiency of financial inclusion in China showed a fluctuating and rising trend,and continued to show an increasing return to scale,that is,the input of financial inclusion in China can be effectively converted into output.According to the regional study,the efficiency of financial inclusion in different regions of China presents a development pattern of "east-west-central",and there is an obvious catch-up effect in the central and western regions.(2)In the period of 2007 to 2016,the average of inclusive economic growth rate in China reached 8.3%,but it generally showed a downward trend.The regional study found that the western region has the highest average growth rate,followed by the central region,and the eastern region has the lowest average growth rate.The inter-provincial differences in inclusive economic growth rate are narrowing.(3)The estimation results of PVAR model show that there is no good interactive mechanism between financial inclusion and inclusive economic growth in China.Regional studies have found that financial inclusion and inclusive economic growth in the central and western regions form a benign interaction mechanism,especially in the western region,while the eastern region is more likely to show the driving effect of inclusive economic growth on financial inclusion.(4)The mediating effect test results show that the negative mediating effect of the increase in inequality cancels the positive mediating effect of the decrease in poverty,which is an important reason why the financial inclusion in China does not significantly promote the inclusive economic growth.The regional study found that poverty and income inequality did not play a significant mediating role in the process of financial inclusion affecting inclusive economic growth in eastern.In the process of financial inclusion significantly promoting inclusive economic growth in central and western regions,the decrease of poverty and income inequality plays a significant positive mediating role.In addition,employment has played a significant positive mediating role in the process of financial inclusion promoting the decrease of poverty and income inequality.Secondly,for the two dimensions of inclusive economic growth: benefit sharing and participation,this artical,based on the measurement results of financial inclusion,studies the nonlinear and spatial spillover characteristics of the impact of financial inclusion on poverty and inequality by using panel smooth transition regression(PSTR)model and spatial durbin model(SDM).The TVP-SV-VAR model was used to study the time-varying and lagging characteristics of the impact of financial inclusion on employment.Results are as follows:(1)The estimation results of the PSTR model show that financial inclusion in China can reduce the urban poverty level and expand the urban income inequality level sustainably,but the intensity of these two effects is decreasing as the level of economic development rises.The influence of financial inclusion on the level of rural poverty and the level of income inequality in urban and rural areas shows an inverted u-shaped non-linear feature with the rise of economic development.(2)The SDM model estimation results show that the financial inclusion can significantly reduce the urban poverty of the province,at the same time can also through the spillover effect significantly reduce the urban poverty of neighboring provinces,but the direct effect and spillover effect of the impact of rural poverty are not significant,and this difference leds that financial inclusion can not significantly narrow the urban-rural income inequality through direct effect and the spillover effect.(3)TVP-SV-VAR model estimation results show that with the advancement of financial inclusion,raising the usage of lending and insurance service can promote the whole employment and the tertiary industry employment,especially after 2015,the promoting effect of financial inclusion showed long-term sustainability;At most time in the sample period,the usage of securities service has an inhibiting effect on the overall employment and the tertiary industry employment,and the trend of the change of this effect is closely related to the fluctuations of the gem market.Finally,based on the micro group level,this artical adopts Probit model to measure and evaluate the level of financial inclusion according to the newly released global financial inclusion database 2017.Results are as follows:(1)From the perspective of the use of financial services,China's formal finance has a relatively limited degree of tolerance for the young and the female.Informal finance and digital finance have to some extent improved the possibility of using financial services for these two groups,but not for the elderly.The low income level leads to the dependence of Chinese residents on informal finance,and the emergence of digital finance has not significantly changed this situation.The improvement of education level and employment level can promote financial inclusion,but this promotion role needs to be further strengthened.(2)From the perspective of barriers and motivations to use financial services,the young and the elderly in China do not face any obvious barriers to access to formal accounts,but the elderly have relatively weak motivations to use financial services;Women face significant subjective barriers to access to formal accounts and are significantly less motivated to use financial services than men.In addition,the low income level is still the main factor hindering residents' access to formal accounts and use of financial services.The improvement of income level,education level and employment level can significantly improve residents' motivation to use financial services to meet their own development and enjoyment needs.The conclusion of this artical is that the future development of financial inclusion in China should pay more attention to improving the accuracy of services and ensuring the business sustainability and efficiency of financial inclusion,so as to effectively promote inclusive economic growth.The theoretical framework of this artical enriches the relevant theoretical research on the relationship between financial inclusion and inclusive economic growth.The empirical research conclusion of this artical has certain reference value for China to formulate more targeted policies of financial inclusion in the future.