A Study On The Impact Of Inclusive Finance Development On Economic Growth In China

Inclusive finance draws a picture of a new finance industry that realizes goals of low cost,wide coverage and sustainability.Under the background of economic globalization and financial internationalization,how does inclusive finance,as a financial innovation,serve the development of the real economy?The topic is a hot spot for many scholars.This article begins with a more systematic analysis and a review of relevant literature from the perspectives of the theoretical connotation,the establishment of indicators and the relationship between economic growth and inclusive finance;secondly,the article attempts to build a theoretical analysis framework of finacial inclusion,which includes the meanings of inclusive finance and its service object,the relation between inclusive finance and developing economy,how it affects growth of economy and its inner development routine;thirdly,the article selects three inclusive financial indicators,which are coverage breadth,depth of use,and level of digital support services.These indicators includes banking,insurance,and internet finance areas.After the calculation of weights of index of inclusive finance with the method of entropy,the article measures the development level of inclusive finance in China and compares the differences in the development level of inclusive finance in all regions.Furthermore,the article uses different panel models for regression analysis to explore the relationship between inclusive finance and economic growth.Based on systematic research of inclusive finance,the following conclusions are drawn:(1)The endogenous development path of inclusive finance shows that financial innovation is the driving force for the inclusive financial development of small and micro enterprises.Only if innovation can we break the critical point of inclusive finance and provide financial products for long-tail customers.In the eastern region,the coverage of financial coverage and usage depthare relatively high.Increasing the level of digital support services is a new development point for inclusive financial innovation;(2)The importance of these three index weights is metablic.Among those three index weights,the index of Width of coverage has the greatest impact on the level of inclusive finance.But Depth of using index is more significant than coverage index.And Digital service index shows growing importance recently.Weights concerning banks are higher than those of the insurance and internet industries.(3)Chinals inclusive financial sector is unevenly developed.The development of inclusive finance does not show the trend of "gradient reduction",but presents the pattern of "central collapse".The level of inclusive finance in the eastern part of china is higher than the rest regions.The inclusive finance in neighboring cities is less different.Under the support of government,inclusive finance in middle and western regions has improved significantly;(4)The effect of digital inclusive finance on economic growth is non-linear and presents a U-shaped relationship.In the regression model of sub-samples,there is a linear relationship between inclusive finance and regional economic growth.The development of inclusive finance in the eastern region affects the economy positively,while negatively affects economy of middle and western part of China.At last,several suggestions were made to improve the inclusive finance development in China:(1)Improve the theoretical framework for inclusive financial developmen.Government should promote high-level inclusive financial development at national level and coordinate relations between various departments;(2)Build inclusive financial monitoring data to observe Chinese inclusive finance development and have real-time tracking of inclusive financial indicator system based on real-world conditions;(3)Make differential strategies of inclusive financial development.In the middle and western regions,the government is required to increase financial propaganda,popularize financial knowledge,and vigorously promote financial infrastructure construction.