A Theory And The Positive Analysis Of The Financial Exclusion

Since reform and open up, the financial industry of the city part of our country is improving fast with our economy while the country part has gone through steps of the existence of basic financial service, the mass remove of the large commercial bank, the grow up of the local country financial institution. So it needs a style of continuous economy theory to explain this kind of economic phenomenon from the opinion of economic evolution and improvement.This article will follow the way of the new classic economy, with the idea of transactional efficiency to build a theory of financial exclusion of China.First, we need discuss the two parts of economy-the city part and the country part, what will happen to the situation of division of labor in different level of transactional efficiency. The financial industry grows up in the city part, how it can improve to the country part and when the local financial institution of the country part can come up. With the different level how financial exclusion will be between the urban and rural. Then with the theory given we find out some financial indexes to build a system to measure the degree of financial exclusion of the two parts, especially to the transactional efficiency system.Then we need to test the system with the data of the different provinces which with different level of financial situation to find out the basic situation of financial exclusion of China. With the conclusion we can finger out the importance of transactional efficiency and how to treat the coming up local financial institution of the country. With the proper support to the local institution it can give a great help to improve the economy of country part.At last, with the result we will give out the suggestion of the economy policy including the government should increase the level of transportation, communication and education. Meanwhile the government need to reform institutional factor that restrict the improvement of transactional efficiency to help local financial institution.