Research On The Impact Of Digital Financial Inclusion On Common Prosperity

Common prosperity has been the ideal pursuit of our country for several thousand years,and it is the important theme of building our modern socialist country.Since 2010,China has been firmly ranked as the world’s second largest economy,and by 2020,it will have basically achieved a moderately prosperous society.However,at the same time,the overall level of prosperity of the Chinese people is not high,the Gini coefficient is high,the gap between the rich and the poor is still very serious,and the realization of common prosperity faces many challenges.Finance is one of the driving forces of China’s economic development.As a complementary form of traditional finance,digital inclusive finance brings the "long tail" into the financial system,which increases their income and Narrows the income gap.The application of digital technology reduces environmental pollution and increases the demand for technical talents,which is conducive to sustainable development and the realization of common prosperity.However,in practice,there is no unified conclusion on the relationship between digital financial inclusion and common prosperity,and its overall logical framework needs to be further analyzed.Therefore,this paper attempts to discuss the impact of digital financial inclusion on common prosperity from both theoretical and practical levels,with a view to providing policy reference for the realization of the vision goal of 2035 from the perspective of digital financial inclusion.This paper aims to answer the following three questions:(1)Does digital financial inclusion have an impact on common prosperity?(2)If so,what is the transmission channel?(3)Does the effect vary in different regions with different characteristics?This paper first analyzes the theoretical mechanism of the influence of digital financial inclusion on common prosperity and summarizes the existing transmission channels.Secondly,we measure and analyze the common prosperity index and its characteristic facts of 272 prefecture-level cities,and then analyze the correlation between digital financial inclusion and common prosperity.Thirdly,this paper empirically tests the impact of digital financial inclusion on common prosperity from three aspects,namely,the influence channel and heterogeneity effect,and then empirically tests the impact of digital financial inclusion on common prosperity from a micro perspective.Finally,based on the main conclusions of this paper,it puts forward some policy suggestions to promote the development of digital inclusive finance and achieve common prosperity.Starting from reality,combining theory and empirical analysis,this paper draws the following conclusions:Firstly,from the theoretical analysis,we can see that(1)Digital financial inclusion will produce "Matthew effect" in the early stage of development,but with the popularization of digital financial inclusion and the development of economic society,digital financial inclusion is conducive to promoting common prosperity;(2)Digital financial inclusion will directly promote the realization of common prosperity from three aspects: raising income level,narrowing group gap and alleviating environmental pollution;(3)Digital financial inclusion will promote common prosperity by easing financing constraints,enhancing entrepreneurial vitality and promoting industrial structure upgrading.Secondly,the empirical analysis shows that:(1)According to the benchmark regression,digital financial inclusion has a significant positive impact on common prosperity.The coverage breadth,depth of use of digital finance and the digitalization degree of inclusive finance also have a significant positive impact on the common wealth and the degree of affluence,common degree and sustainability.(2)According to the regression of intermediary variables,digital financial inclusion will promote common prosperity by easing financing constraints,improving entrepreneurial vitality and promoting industrial structure upgrading.Meanwhile,the three transmission channels play a better role in the areas with better traditional financial development,better Internet development and higher human capital level respectively.(3)According to the heterogeneity analysis,the impact of digital financial inclusion on common prosperity is different in different regions.The reason for this phenomenon is that there are still "economic divide","digital divide" and "knowledge gap" in China.Population size is also an important factor limiting the impact of digital financial inclusion.(4)Further analysis from the micro perspective shows that digital financial inclusion is conducive to improving the common prosperity of micro individuals,and digital financial inclusion can not only improve residents’ income;In particular,digital financial inclusion has a better effect on improving the income of rural residents,low-income groups and residents in Northeast China,which is conducive to narrowing the income gap.Digital financial inclusion also reduces environmental pollution and contributes to sustainable development.Compared with the existing research,the innovation of this paper lies in:(1)the optimization selection and improvement of the measurement method of the common prosperity index.In this paper,the concept of "dynamic weight" should be adopted in the construction of common prosperity index.In different stages of common prosperity,the weight of richness,common degree and sustainable degree should change.In the early stage of reform and opening up,when solving the problem of food and clothing,the weight of the degree of wealth should be greater,that is,"the first rich brings the latter rich";In the period of well-off level,the weight of common degree should be increased,and the weight of the three dimensions will be similar.In addition,with the gradual improvement of people’s living standards,the proportion of common degree and sustainable degree should also be gradually increased,and the weight of sustainable degree should reach the maximum in the later stage of realizing common prosperity.(2)Systematically discusses the theoretical mechanism of digital financial inclusion affecting common prosperity.This paper systematically analyzes the theoretical mechanism of the influence of digital inclusive finance on common prosperity,and believes that in the early stage of the development of digital inclusive finance,due to the existence of "economic divide","digital divide" and "knowledge gap",there will be "Matthew effect".However,with the development of digital inclusive finance and the continuous improvement of digital technology facilities,digital inclusive finance can effectively improve the level of common prosperity.It makes up for the theoretical analysis that the current research considers the influence of digital financial inclusion on common prosperity from a single Angle.(3)It further analyzes the heterogeneous impact of digital financial inclusion on common prosperity.Starting from the "economic divide","digital divide","knowledge gap" and population size,the paper systematically discusses the influence of digital inclusion finance on common prosperity in different regions with different characteristics,and examines the extent to which each region’s economy,human capital level,digital infrastructure and population should develop.Digital inclusion finance can play the best role in realizing common prosperity.