Measurement of rural inclusive financial development and analysis of spatial effects on anti-poverty.

Abstract

Based on two dimensions of supply and demand, we use six indicators to establish a rural inclusive financial development index and evaluate the development of China's rural inclusive finance. We use spatial panel data model to examine the relationship between financial inclusion and rural poverty. Results show that: (i) both the rural inclusive finance and rural residents' per capita consumption present spatial clustering feature and show significant spatial correlation; (ii) the development of rural inclusive finance has significant spatial effect on poverty alleviation along time and space dimensions. In this study, the paper puts forward policy recommendations on strengthening the rural financial resources flow and constructing diversified rural inclusive financial system.