Studying On The Measurement And Influence Factors Of Rural Financial Inclusive Development Level In China

With the deepening of China’s reform on the rural financial system, the financialdevelopment in rural areas has made considerable progress. By the end of2011, thereare10provinces achieving full coverage of rural financial service institutions, and thebasic financial services have covered the whole villages and towns in30provinces.Besides, various types of financial institutions, which have a clear division ofresponsibilities and mutual coordination complement, have been initially formed arural financial organization system architecture. The saving service in rural areasbasically satisfied while multi-level credit market gradually formed. However,China’s financial development process showed a typical "dual structure" characteristic,and the rural financial development is extremely lagging behind. What’s more, thecurrent development of China’s rural finance is mainly manifested as the developmentof financial depth, nor the development of financial breadth, financial exclusivephenomenon is still relatively prominent. How to improve China’s rural financialinclusive development level, so that all farmers can get access to financial servicesthrough all the process and the full range, is an important goal of the construction ofrural financial system, which is also a key link in the process throughout the conceptof inclusive growth.Firstly, we introduced the theoretical basis of financial inclusion, and expoundedthe theory of financial width，the inclusive growth theory and the theory of financialdevelopment right. Based on this, from the four dimensions of rural financialinclusion,which includes permeability, availability, effectiveness and affordability, weconstructed a evaluation index system to measure China’s rural financial inclusionlevel. We determined the dimension value according to Euclidean distance method,while the coefficient of variation method was determined to take the dimension ofindex weight, and then the rural financial inclusion index was constructed to evaluateChina’s rural financial inclusion from2006to2011. The results showed that, thedegree was relatively low in general. Furthermore, we analyzed the provincialdifferences of rural financial inclusion taking cluster analysis, and drew a conclusionthat China’s rural financial inclusion showed as the shape of Pyramid typically. Thelevel of development of rural financial inclusion in eastern coastal provinces was high,while the majority of the central and western provinces rural financial inclusive development level was still low.Secondly, with the rural financial inclusion index as the dependent variable, weestablished the model of influence factor on rural financial inclusion from includingsupply, demand, and the social environment. Meanwhile, we used fixed effects panelregression estimation method on dynamic provincial panel data, finding out the keyinfluence factors of rural financial inclusion, in order to lay a foundation to formulatecorresponding countermeasures of promoting the rural financial inclusivedevelopment.Finally, we believed that, solving the problem of motivation and sustainabilitythat financial institutions participate in the rural financial market, is of greatimportance to raise China’s rural financial inclusion level of development. Thegovernment should give full play to the role of guider and regulator, to provide a goodenvironment and policies for the upgrading of rural financial inclusion level.