A Study on the Impact of Financial Exclusion on China's County Economy: Implementation Path and Dynamic Characteristics

Yao Meijie, Kang Jijun, Hua Ying

Journal of Finance and Economics Vol. 43, Issue 08, pp. 96 - 108 (2017)  DOI:10.16538/j.cnki.jfe.2017.08.008

Abstract

Based on the large sample data of 2578 counties (cities) from 2006 to 2010, this paper conducts a panoramic view of China's financial exclusion from a regional perspective, and examines the impact of financial exclusion on the local economy and its realization path. It arrives at the following conclusions: firstly, the financial exclusion in the eastern China experiences a declining trend, and central & western China a rising trend; the unbalanced development of the utility of financial resources use is the main reason for the widening gap between eastern China and central & western China; secondly, financial exclusion has a significant negative impact on the county economic system, but financial exclusion is not necessarily reducing with local economic growth; thirdly, China's financial exclusion has gradually emerged from a sensing of "a lack of facilities" to a sensing of "a lack of mechanism", and from "individual characteristics sensing" to "regional endowment sensing"; the forefront of the agricultural industry chain is increasingly affected by the financial exclusion. This paper not only enriches the Chinese evidence from the local large sample, but also provides a reliable reference for the decision-making institutions to grasp the financial exclusion situation and formulate the relevant policies.

Keywords

financial exclusion; county; economic growth; regional heterogeneity