Abstract: The main contradictions of China's economy in the new era require increasing the inclusiveness of economic development. Structural contradictions and resource mismatch in the process of financial development require further financial deepening. The answer to the two integrated issues is to develop inclusive finance. At present, China's inclusive finance has problems such as model drift and insufficient supply, and the research on the theoretical level is relatively lagging. It requires the integration of traditional theories such as financial development theory, financial ethics, and mechanism design theory. The definition of theoretical concepts is the premise. Inclusive finance is “finance” first, and it must follow the basic laws of finance. Meanwhile, it must be “universal” in coverage and “beneficial” in capital prices. This paper constructs the production function of inclusive finance in a standard financial enterprise production environment, constructs the technical possibility curve and the social welfare curve on this basis, and analyzes the improvement effect of developing inclusive finance on social welfare. In terms of solutions, this article proposes to improve the total factor productivity of the development of inclusive finance from several levels such as organizational mechanism, financial technology and human resources.
