The Spatial Differences, Welfare Analysis and Affecting Factors of Financial Exclusion in Rural China

摘要

This paper is concerned with the financial exclusion in rural China. The author makes a comprehensive analysis on spatial differences, consequences and causes of financial exclusion in rural areas of China. She not only establishes a comprehensive index system to measure spatial difference of financial exclusion but also compares financial exclusion in rural areas of 31 provinces in China. There is likelihood that individuals, households, enterprises and regions may all be excluded, which causes severe welfare losses. The affecting factors of financial exclusion include demand factors, supply factors and societal factors which are interactive, non-linear and have different elasticity. Income, technology, income difference, age and small and medium enterprises (SME) are verified to be especially important drivers of rural financial exclusion in China via fuzzy curve analysis. The study shows that the following schemes are beneficial to financial inclusion in rural China: (1) increase income, technology and financial literacy of rural residents; (2) meet requirements of diversified financial demands and bridge the gap between cities and countryside; (3) establish alternative financial infrastructure and encourage cooperation within governments, banks and non-profit institutions and (4) promote financing to SME by mainstream finance.