Regional Differences of Rural Financial Exclusion ——in Gansu and Jiangsu Province

At present, China is facing a serious problem of financial exclusion in rural areas, which restricts the development of rural economy and even the comprehensive, balanced and sustainable development of the overall real economy. From the perspective of regional differences in Gansu and Jiangsu provinces and between these two provinces, this paper establishes the Index of Rural Financial Exclusion, and explores the relationship between the refined indicators. Combining the economic theory, this paper uses double logarithmic models to analyze empirically on the relationship between the balance of loans per person and two factors: the density of branches with respect to population and GDP per capita and then compares these two models. We use this model to discuss the driving factor that can help to alleviate rural financial exclusion in different regions. In this paper, comparative analysis, theoretical analysis, empirical analysis, qualitative analysis and quantitative analysis are methods used to analyze the statistical data issued by the China Banking Regulatory Commission. This paper integrates the analyses of rural financial exclusion in provinces and between provinces, and comes to these conclusions about the rural financial exclusion problem of Gansu Province and Jiangsu Province in micro and macro level: (1) the forms of rural financial difference between areas are diverse. The degree of financial exclusion in Gansu are higher than that in Jiangsu, (2) the policy-related loans issued in Gansu are effective, (3) deposits absorbed in areas that are highly financial excluded flow to the regions facing relatively slighter exclusion. The capital allocation function of rural financial markets in Gansu should be improved, (4) two indicators, balance of loans per capita and the number of financial institution branches per 10,000 populations, are positively related. If the number of financial institutions branches in Gansu Province is increased, the balance of credit per capita will be increased, further, it will alleviate rural financial exclusion effectively.

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 Record created 2017-04-01, last modified 2017-04-26

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