The Research On The Rural Financial Exclusion In China

Financial exclusion in rural areas is a common phenomenon in economic development; it has a great harm to both the society and the economic development, such as worsening the social development of urban and rural characteristics, resulting in the social discrimination of the urban migrant farmers, causing rural "financial potential" no full, affecting its economic development and so on. However, financial exclusion has more than one inspection dimension and its influencing factors are complex and diverse, which has brought difficulties to the study of financial exclusion. While the rural financial exclusion also has its own unique characteristics and the missing of China’s rural areas financial statistics further increases the difficulty of such a study. On the basis of domestic and foreign research, this paper examines China’s rural financial exclusion situation and empirically studies its influencing factors and regional differences and lays a solid foundation for effective grasp of the direction of the rural financial reform and future generations of in-depth study.First of all, the paper deeply studies previous studies of domestic and foreign and finds that more studies of rural financial exclusion are elaborating in the qualitative point or conducting theoretical summary by questionnaires and there is very few measurements from the quantitative research in statistics. Therefore, to conduct quantitative research for China’s rural financial exclusion situation and to find the causes in the perspective of measurement statistics has extremely important practical significance.Secondly, the article compares the difference between financial exclusion and its analogues concept and deeply analyzes the causes of financial exclusion and its economic and social impacts. And then, we measure29provinces’rural financial exclusion in China by selecting1995-2009data and analysis of its influencing factors in the perspective of theoretical and empirical. On this basis, the paper also researches regional differences in China’s rural financial exclusion by calculating indices such as Theil and Atkinson index. At last, the paper proposes the policy to eliminate financial exclusion in rural in China.Finally, the paper pointes out that China’s rural infrastructure is weak, the coverage of financial institutions is low, the financial supply is acute shortage and there is lack of competition in the financial system in rural areas. About the influencing factors, the article concludes that the former financial exclusion level, the fixed assets investment, the rural population, level of education and regional geographical features has significant impact on China’s rural financial exclusion. And about the rural financial exclusion regional differences, the paper finds that it is expanding before2001and narrowing after that. But since2007, the regional differences appear the undulation, which indicates that the fruits of China’s rural financial reform are great over10years, but reforms still need to further deepen.