Can Micro-Credit Promote Financial Inclusion? The Evidence from China

Abstract

This paper offers an analysis of the effect of micro-credit to financial inclusion. We use the survey data of Shandong Province in China since 2010 to 2016, and measure the index of financial inclusion to build the sample for empirical study. This paper examines the role of micro-credit for enlarging the coverage of financial service and decreasing the financial cost. Finally, we give the evidence that the development of micro-credit has the positive effect on promoting the financial inclusion.