A Study On The Impact Of County Inclusive Financial Development On Rural Residents’ Income

Agriculture is the foundation of the state.It is of great significance to promote the healthy development of the economy.In 2022,No.1 central document explicitly pointed out that the key to developing rural revitalization is to beware of second poverty.The key is to steadily raise the income level of farmers and provide more convenient conditions for their production and work.The current financial supply side structural reform is to allocate more financial resources to key areas.Inclusive financial services should provide effective support for rural farmers’ financing.To study county inclusive finance and its impact on farmers’ income,this article measures the County Financial Inclusion Index(IFI)to investigate whether there is a correlation between it and the income of rural residents.In particular,whether it produces different effects for rural residents in different regions and at different income levels.Finally,a threshold effect analysis and a mediating effect test are conducted to explore the mechanism of the income increasing effect.This paper draws four main conclusions:(1)The overall development level of inclusive finance in counties is low,and the development is extremely unbalanced among regions.The higher the degree of inclusive financial development in counties,the higher the level of disposable income of rural residents.(2)According to the regression results,the income increase effect shows a trend of central > eastern > western,middle and high income people > low income people.(3)The results of the threshold study verify the non-linear relationship between county inclusive finance and rural residents’ income.Before the county inclusive finance index(IFI)reaches the threshold value,the impact of the level of inclusive finance development on rural residents’ income increase shows a significant "promotion effect",and the income increase effect is much larger than after the county inclusive finance index(IFI)is greater than the threshold value.(4)Financial inclusion can have an indirect impact on the income-generating effect through two indirect channels: economic growth and employment promotion.Finally,this paper puts forward the following policy recommendations:Firstly,it is necessary to promote the construction of county inclusive financial development system and accelerate the construction of related infrastructure;Secondly,it is indispensable optimize the industrial structure,improve the level of modern agricultural development,and play the role of financial underwriting and protection;Thirdly,it is essential promote the high-quality development of county economy and unblock the intermediary transmission mechanism of inclusive finance to promote farmers’ income.