Research On The Impact Of Internet Finance On Rural Financial Inclusion

Proposed by the 19 th National Congress of the Communist Party of China in 2017,The main contradiction in our country has been transformed into a contradiction between the people's pursuit of a beautiful material life and the unbalanced development,And the importance of the “Preferential Finance” policy,which is an important policy for addressing unbalanced and inadequate development,continues to rise.At the same time,due to the inclusive nature of Internet finance itself,It fits well with the core idea of rural inclusive finance,Promote the further improvement of rural inclusive finance through the flourishing development of internet finance,thus driving economic development in rural areas,This idea has been focused by our government and has been used in practical rural work.This paper analyzes the micro-evolution mechanism of internet finance from a new perspective of the division of labor,and reveals the positive effect of internet finance on the development of rural inclusive finance because of the improvement of transaction efficiency.At the current stage,China's Internet finance is the most important factor in promoting rural inclusive finance.First of all,we define the related concepts of internet finance and rural inclusive finance,collate and summarize the existing literature research,and review the relevant viewpoints and conclusions.At the same time,we briefly introduce the theoretical basis for roundabout production in the emerging classical framework.Subsequently,according to the theory of roundabout production in the framework,a mathematical model for the division of labor of the Internet finance industry with a dilemma between specialized economy and transaction efficiency between the two sectors was constructed,which introduced the related transaction efficiency and learning costs of Internet finance,resulting in a level of specialization.,Relative prices are endogenous,revealing the emergence mechanism of internet finance and its impact on rural inclusive finance.Then,based on the collected provincial panel data,the status quo of internet finance and rural inclusive finance is analyzed,including the changes in the time and space of internet finance and rural inclusive finance.Then build an internet financial level index as an indicator,and use the provincial panel data as a basic regression analysis to examine the impact of internet finance on rural inclusive finance and the effect of regional impact.Finally,combined with the theoretical model and empirical data analysis of the impact of Internet finance on rural inclusive finance,targeted policy recommendations were made.The results of general equilibrium analysis and empirical analysis indicate: From the results of general equilibrium analysis,Endogenous transaction efficiency and learning cost drive the development of the Internet finance industry,thereby increasing the industrial chain and the degree of roundabout production,and ultimately promoting the development of rural inclusive finance;From the results of empirical analysis,The overall internet finance in the country is a positive role in promoting inclusive finance in rural areas,with an impact of 0.298.The impact of Internet finance on rural inclusive finance in the region is in a "U " trend,and the impact in the east and west is 0.3417 and 0.2164,respectively.The impact of the relationship is not obvious,only 0.136.