Abstract
Inclusive finance is an important financial development strategy in the world. The promoting effect of the human capital on economic growth has also gained theoretical and empirical support. This paper attempts to deeply examine the interaction among inclusive finance, human capital and regional economic growth as well as their mutual influence mechanism. To the end, data of 31 provinces and cities from 2005 to 2015 were chosen to build a corresponding panel data template. Meanwhile, the fixed effect model was adopted for an empirical test. Results suggest the following. (1) Inclusive finance and human capital can exert a significantly positive promoting effect on regional economic growth. The influence of inclusive finance on regional economic growth is more obvious, while the nonlinear influence of human capital is more significant; (2) Inclusive finance is observed to have a significantly negative influence on economic growth of China’s central region (mainly referring to eight provinces, including Shanxi). The positive promoting effect of inclusive finance on economic growth of China’s west region (mainly referring to 12 provinces and cities, including Chongqing) is found to be the most significant. Differently, human capital exerts the most significantly promoting effect on China’s central region. The economic development level differs in different regions of China. As an increasing number of talent resources gather in the central and western region of China and the financial system is built in the two regions, resource optimization has become a necessity, which is the linchpin to China’s sustainable economic development.
Highlights
Along with continuous development of China’s economy, differentiation of regional economy has gradually become an important factor restricting a country’s overall economic development
Under the background that China’s regional economy develops in an unbalanced manner, implementing inclusive finance and upgrading technical innovation strategies boost the coordinated development of regional economy; by analyzing the interrelation among inclusive finance, human capital and regional economic growth, this study revealed the influencing mechanism of inclusive finance and human capital on regional economic growth, which, to some extent, overcomes the deficiency of previous research that only studied the impact on regional economic growth unilaterally from inclusive finance or human capital
The two test results prove that regional economic growth, inclusive finance and human capital, degree of government intervention, degree of regional opening, investment level of fixed assets and degree of inflation and other sequences have stable incidence relations in the long-term development and it is allowed to carry on the subsequent regression analysis of the empirical model
Summary
Along with continuous development of China’s economy, differentiation of regional economy has gradually become an important factor restricting a country’s overall economic development This problem is mainly reflected as slow development of finance in rural areas, funding difficulties of small- and medium-sized enterprises, disproportional distribution of talent resources, etc. All this has resulted in a widening gap of regional economic development. The functioning mechanism of financial institutions is, to some extent, independent This results in a major difference in the influence of financial institutions of different types. This demonstrates the promoting effect of inclusive finance on sustainable regional economic development [1]
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