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Spur Growth or Promote Income Equality?——Financial Inclusion and Economic Development in China
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TitleSpur Growth or Promote Income Equality?——Financial Inclusion and Economic Development in China  
AuthorPeng Yuchao,Li Jianjun,Gu Leilei and Ma Sichao  
OrganizationRenmin University of China; Central University of Finance and Economics;;; 
Key WordsFinancial Inclusion; Economic Growth; Income Distribution; Regional Balance 
AbstractDoes inclusive financial development spur economic growth or ameliorate income equality? Employing province-year panel data over 2004-2015, this paper answers this question. Overall, inclusive financial development can promote economic growth significantly, while it has little effect on income equality. Inclusive financial development enlarges the growth imbalance across different regions. It has more pronounced effect on economic growth in developed provinces and coastal regions, while it has more significant effect on shortening the urban-rural income gap in western provinces. Furthermore, inclusive financial development can more promote economic growth in regions with better investment environment and more investment opportunities. inclusive financial development can more ameliorate income equality in regions with higher marginal product on capital of agriculture than that of manufacture. Improvement on countryside economic efficiency, amelioration of investment opportunities and investment environment in less-developed regions, are conducive to the effect inclusive financial development has on balanced economic growth and urban rural income equality, with both efficiency and fairness taken in consideration. 
Serial NumberWP1278 
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