Research On The Measurement Of The Development Level Of Interprovincial Inclusive Finance In China

In the past 40 years of reform and opening up,China has achieved world-renowned economic growth.Ho we ver,there are still problems that cannot be ignored behind many achievements,such as the large income gap.In the area of finance,the allocation of financial resources is uneven,financial resources in backward areas are relatively insufficient,and the low-income groups have no equal access to financial services.Finance is seen as one of service sectors,and the fundamental purpose of developing financial sector is to serve the real economy.However,the profit-seeking financial institutions channel more funds into certain high-yield industries or classes in the process of capital allocation,thus leading to financial exclusion.As the financial needs of most vulnerable groups cannot be met,it further widened the income gap and constrained economic development.To support the development of inclusive finance is an important way to reduce financial exclusion.Since the concept of inclusive finance was introduced in 2005,it has attracted continuous research and practices.Previous studies at home and abroad have proved that inclusive finance is both a reflection of and a supplement to the current financial system.It can include the vulnerable groups that suffer from financial exclusion into the scope of financial services,enabling them to enjoy the benefits brought about by economic growth.Given different regional financial and economic developments in a country with a vast territory,assessing and studying inter-provincial inclusive financial development is more conducive to developing inclusive finance in China.The paper first presents the theoretical basis and development status of inclusive finance,It also summarizes the growth quality of inter-provincial inclusive finance in China by analyzing its coverage,penetration and new forms of innovation.Next,it introduces the difference between subjective weighting and objective weighting of the index method of financial development,and obtains the inclusive measurement results of 31 Chinese provinces from 2005 to 2017 by constructing inclusive financial index based on the coefficient of variation method.In this way,the paper accesses China’s inclusive financial development from the perspective of quantity in a certain period.In all,the paper judges inter-provincial inclusive financial development from two perspectives,quality and quantity.During the study,it is found that various regions differ widely in their development level of inclusive finance and it is highly consistent with the level of their economic growth.Therefore,the panel model is used to divide these 31 provinces from 2005 to 2017 into the eastern,central and western regions,and conduct empirical analysis of the relations between inclusive finance development and economic development.The conclusion is that inclusive finance shows differences in promoting regional economic growth.Finally,on the basis of comprehensive analysis of the quality of inter-provincial inclusive financial development and regional differences,the paper gives targeted policy suggestions to promote the development of inclusive finance in different provinces,so as to better sustain China’s real economy.