Research On The Impact Of Inclusive Finance On Common Prosperity

Common prosperity has been a beautiful society that the Chinese people yearn for and pursue since ancient times.From the value pursuit of "the world for the common good" in ancient society to the socialist industrialization of new China and to the building of a moderately prosperous society in an all-round way,the Chinese nation’s tireless pursuit of common prosperity has been deeply reflected.Common prosperity is related to the national economy and people’s livelihood.It is the fervent expectation of the whole country,and it is the top priority of our Party’s work at the present stage.Based on this background,this paper discusses whether inclusive finance can promote common prosperity through theoretical analysis and empirical research.In terms of theoretical analysis,this paper summarizes domestic and foreign literature on inclusive finance and common prosperity,introduces the connotation of inclusive finance and common prosperity and analyzes the relevant theoretical basis,and concludes that inclusive finance can not only promote common prosperity,but also achieve common prosperity by accelerating industrial structure upgrading and human capital level upgrading.In this paper,the coefficient of variation method is used to construct the inclusive finance index of Chinese provinces from the three subdimensions of penetration,availability and utility.At the same time,the entropy method and the coupling coordination degree model are used to construct the common wealth index of 30 provinces from the sub-system of economic growth and economic equality.On the basis of theoretical research,this paper empirically examines the influence,mechanism,regional heterogeneity and threshold effect of inclusive finance on common prosperity.First of all,this paper adopts static panel regression and uses two-way fixed effect model to study the impact of inclusive finance on common prosperity and its two subsystems from the overall level.Then,considering the endogenous problem and the fact that common prosperity is a dynamic adjustment process,this paper introduces the dynamic panel regression method and uses the systematic GMM estimation method to test the relationship between inclusive finance and common prosperity from the overall level,and then tests the relationship from the three sub-dimensions of inclusive finance,so as to ensure the unbiased and robust results,and then empirically analyzes the impact of financial inclusion on per capita income and income equality.Secondly,this paper applies the threshold model to study whether there is a threshold effect of inclusive finance on common prosperity.Thirdly,considering the basic situation of China,this paper divides China into south and north for sub-sample estimation.Finally,this paper uses the mediating effect model to study whether inclusive finance can achieve common prosperity through the mechanism of accelerating industrial structure upgrading and improving human capital level.According to the research,the following conclusions can be drawn.First,the development of inclusive finance plays a positive role in promoting the two subsystems of common prosperity,per capita income and income equality.The conclusions of static panel analysis and dynamic panel analysis are consistent.Second,there is regional heterogeneity in the impact of inclusive finance on common prosperity.From the perspective of the north and south,the impact of inclusive finance on common prosperity in the south is more significant than that in the north.Third,from the perspective of mechanism,inclusive finance can promote common prosperity by promoting the optimization and upgrading of industrial structure and improving the level of human capital.Fourth,the influence of inclusive finance on common prosperity has a single threshold effect.When the development of inclusive finance reaches a certain level,its influence on common prosperity will be weakened.Therefore,the following policy implications can be drawn.First,sustainable development of inclusive finance cannot be achieved without the support of government policies,so policy guidance should be strengthened and the function of market resource allocation should be effectively brought into play.Second,all regions should implement differentiation strategies to promote the common prosperity level in their own regions according to local conditions.Third,attention should be paid to the mechanism of industrial structure upgrading and human capital level upgrading on common prosperity.Finally,we should improve and optimize the inclusive financial system and give full play to its role in promoting common prosperity.