Financial Development and Per Capita Household Income

Since the founding of the Peoples Republic of China, the financial industry has experienced significant development, leading to a substantial increase in per capita household income. This paper uses data on per capita household income nationwide from 2010 to 2022, along with the number of financial institutions across various regions from 2010 to 2022, to study how financial development impacts per capita household income. Empirical findings reveal a positive correlation between the number of financial institution outlets and per capita disposable income, with noticeable differences between urban and rural areas. The increase in the number of urban financial institutions has a greater effect on improving per capita household income. The study concludes that developing inclusive finance, digital finance, and other approaches to provide efficient and convenient financial services to more people can promote social and economic development.