The Measurement And Influencial Factors Of The Inclusive Finance In China

The United Nations formally put forward the concept of "inclusive finance" at the International Year of Micro-finance and published a blue paper on inclusive finance in 2005,stating that everyone should have a fair chance to enjoy the services provided by the formal financial system.In 2013,the government formally put forward the goal of developing financial system including developing inclusive finance,encouraging financial innovation,and enriching financial market levels and products.In 2016,The government issued the Plan for Promoting Inclusive Finance Development(2016-2020),pointing out three perspectives of improving the coverage,availability,and satisfaction of financial services to develop financial inclusion.This shows that the concept of inclusive finance has drawn great attention from the country and has drawn close attention from the society.It is an urgent demand and an inevitable path for the construction of the modern financial system and economic development.It also means that financial inclusion has risen from the economy to the national strategy.In this paper,the study on inclusive finance is of great significance to the construction of inclusive financial system.This paper first reviews the research of inclusive finance at home and abroad,then introduces the basic theory of inclusive finance and analyzes the current development of inclusive finance in China from the aspects of coverage and penetration of inclusive financial services.Based on the two dimensions of availability of financial services and the use of financial services,choosing eight indicators such as the insurance density,and the depth of insurance,using the coefficient of variation method to determine the weight of indicators to build the inclusive financial index IFI,and measure the level of development of inclusive finance in 31 provinces in China from 2007 to 2016.The result of the calculation shows that the level of inclusive finance in China has been a steady upward trend in the past ten years.The inclusive financial index of Beijing,Shanghai have exceeded to 0.7,which lead an absolute advantage over the other provinces.The inclusive financial index in the eastern region is much higher than that in the central and western regions.There are obvious regional differences in the development of inclusive finance in China.Based on this,this paper use the panel data model and take the IFI of 31 provinces in China in 2007-2016 as an explained variable,and conducts an empirical study on the influencial factors of the level of inclusive financial development.This paper finds that the level of inclusive finance is affected by many factors,of which the average years of education of residents,the penetration rate of the Internet,the contribution rate of the financial industry to GDP and the degree of traffic convenience have a significant positive impact on the level of inclusive financial development.The effect of the per capita income ratio between urban and rural residents on the level of inclusive financial development is negative.Finally,this paper puts forward the following suggestions: improve the educational level and residents' financial awareness,improve the Internet penetration rate,narrow the income gap between urban and rural areas,strengthen infrastructure construction,encourage financial innovation.