Study On Development Level Measurement Of Financial Inclusion And Its Influence Factors In Five Provinces Of Northwest China

As the core of modern economy,finance should have played the role of optimizing economic resources and promoting economic and social development.However,social groups like farmers,low-income people in cities and towns,poor college students,disabled people and small and micro enterprises are excluded from the traditional financial field for various reasons in real life,and can not obtain high-quality financial services or access to financial services at a cheap price.Usually,the residents of rural areas,remote mountainous areas and border areas often suffer more serious financial exclusion because of the consideration of the interests of financial institutions.Especially in areas like the five provinces of Northwest China,they are located in the frontier of the country,economically underdeveloped.At the same time,the proportion of rural population and ethnic minority compatriots in the total population is relatively high.The terrain is also extremely complex,which leads to the inadequate demand for financial services of residents in five provinces of Northwest China.The development level of financial inclusion in five provinces of Northwest China is much lower than that in the developed eastern provinces.There is a big gap between the value of index of finance inclusion of this two regions.Firstly,based on the previous research results,this paper elaborates the relevant theories of finance inclusion,and then analyses the current situation of finance inclusion in five provinces of Northwest China from three aspects: availability of financial services,usability of financial services and quality of financial services.Secondly,according to the actual situation of our country and the availability of data,it constructs the index of finance inclusion and uses the coefficient of variation method to determine the index weights,which are used to measure the index of finance inclusion of the five provinces of Northwest China,and compares the index of finance inclusion of the five provinces of Northwest China with the index of finance inclusion of other regions in our country.The result shows that only the development level of financial inclusion of Shaanxi Province has reached the medium level and the development level of finance inclusion in Gansu,Qinghai,Ningxia and Xinjiang provinces and regions is relatively low.On the whole,the development level of finance inclusion in five provinces of Northwest China is at a low level.On this basis,the relevant influence factors variables are selected as explanatory variables,and the index of financeinclusion of the five provinces of Northwest China is used as explanatory variables for multiple linear regression.The appropriate model is determined by F-test and Hausman test,and the data stationarity and co-integration relationship are tested.The results show that the level of economic development,urbanization,education,urban-rural income gap and Internet popularity have a significant impact on the index of finance inclusion of the five provinces of Northwest China.The urban-rural income gap is negatively correlated with the index of finance inclusion of the five provinces of Northwest China,while the other four variables are positively correlated with the index of finance inclusion of the five provinces of Northwest China.Finally,based on the empirical results,the paper puts forward policy suggestions on improving the development level of finance inclusion in five provinces of Northwest China from five aspects: coordinating regional economic development,further narrowing the income gap between urban and rural areas,strengthening the innovation of financial services,improving the popularity of the Internet and vigorously promoting the publicity and popularization of financial inclusion knowledge.