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Open AccessArticle

Is the Development of China’s Financial Inclusion Sustainable? Evidence from a Perspective of Balance

by Bao Zhu 1, Shiting Zhai 2 and Jing He 1,*
1
College of Finance and Statistics, Hunan University, Changsha 410079, China
2
Educational Science Research Institute, Hunan University, Changsha 410006, China
*
Author to whom correspondence should be addressed.
Sustainability 2018, 10(4), 1200; https://doi.org/10.3390/su10041200
Received: 23 March 2018 / Revised: 10 April 2018 / Accepted: 11 April 2018 / Published: 16 April 2018
(This article belongs to the Special Issue Sustainable Finance)
Balance plays an important role in the sustainable development of China’s financial inclusion. First, this paper reports the entropy weight method used to construct a financial inclusion index (FII) and measure the level of development of financial inclusion in China’s regions. Second, the concept of the Gini coefficient of financial inclusion is proposed and the structural balance of China’s financial inclusion is shown, as calculated by using this Gini coefficient. Third, we report the use of a dynamic shift-share model to further discuss the development balance of the financial inclusion of China’s regions. The results show that there is an imbalance in the development of financial inclusion in China’s regions. For 2006–2016, the Gini coefficient and the structural balance of China’s financial inclusion show a significant downward trend. The gap of the financial inclusion development between regions is narrowing and the structure of China’s financial inclusion tends to be reasonable. The penetration dimension is at a structural disadvantage. Availability and usage dimension are at a structural advantage, which can effectively promote the development of China’s financial inclusion. In the future, the government should establish a more balanced financial inclusion development mechanism, making full use of structural advantages of the availability and usage of financial services to promote the sustainable development of China’s financial inclusion. View Full-Text
Keywords: financial inclusion; sustainable development; Gini coefficient; development balance; structural balance; dynamic shift-share model financial inclusion; sustainable development; Gini coefficient; development balance; structural balance; dynamic shift-share model
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Zhu, B.; Zhai, S.; He, J. Is the Development of China’s Financial Inclusion Sustainable? Evidence from a Perspective of Balance. Sustainability 2018, 10, 1200.

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