Abstract: It is an important premise to clarify the impact and its change characteristics and function channels of inclusive finance development on resident welfare. Based on China's provincial panel data from 2011 to 2020, this paper empirically analyzes the impact of inclusive finance development on resident welfare by using PSTR Model. The empirical results show that the development of inclusive finance can improve the resident welfare, and this promoting effect increases with the improvement of regional economic development level. The upgrading of industrial structure, urbanization development and fiscal expenditure also have a non-linear impact on resident welfare. Based on the test results of One-dimensional Parallel Multiple Intermediary Model, it shows that the regional differences in the impact of inclusive finance development on resident welfare come from different action channels. The development of inclusive finance in the eastern region improves resident welfare through employment channels and wealth channels, while for the central and western regions, the above channels have no significant or even negative impact on resident welfare. In this regard, based on the unbalanced development of inclusive finance in China, while continuing to implement stable inclusion financial-related policies in the eastern region, we should focus on the implement of inclusive finance policies aimed at expanding employment and stabilizing wealth in the central and western regions, promote the industrial structure upgrade and urbanize, adjust the fiscal expenditures rationally, so as to improve the overall resident welfare.

Keywords: inclusive Finance; resident Welfare; consumption Equivalence; PSTR Model; one-dimensional Parallel Multiple Intermediary Model