Inclusive Finance Impact On Development Of County Economy In Hunan Province

Inclusive finance was first identified as a national strategic plan in Plan for Advancement of Development of Inclusive Finance(2016-2020),which is issued by the State Council.Expanding county economies is an important issue delivered at the 16 th and 17 th National Congress of the CPC.Both the inclusive finance and county economies are essential for national development.In the outline of the 13 th Five-Year Plan of Hunan Province,financial service industry and the county economy were still underdeveloped.And bolstering the areas of weakness was the key of developing into a manufacturing powerhouse for Hunan.Enhancing the prosperity financial services and county economy is a task of top priority for Hunan.Therefore,it is necessary to explore whether inclusive finance can affect the development of county economy,and how to utilize inclusive finance to promote the expan sion of county economy.In this dissertation,the author firstly presented the theory of inclusive finance and county economies according to some related literatures.Secondly,based on previous researches,in this dissertation,county inclusive financial index was built.Inclusive financial index was also calculated to measure the levels of county inclusive financial.Thirdly,on the base of 2009-2014 panel data of 87 counties(cities)of Hunan province,the impact of inclusive financial on the development of county economy was analyzed.According to above analysis,it is concluded that the inclusive financial level in Hunan Province was gradually improved from 2009 to 2014,but it is still low compared with other provinces.Judging from the current situation,county inclusive financial level in Changsha-Zhuzhou-Xiangtan area is generally higher than other areas,reflecting the significant regional difference of inclusive financial development level in Hunan province.Based on the research,it is cert ain that the economic development of the county is promoted by inclusive finance.But in the area with higher inclusive financial level,the expansion of county economy is not extremely significant.This shows that the effect of inclusive finance on the de velopment of county economy has diminishing marginal effect.Therefore,the implementing of inclusive finance in Hunan should be conducted according to the actual situation and to ensure to foster strengths and circumvent weaknesses.