Research On The Impact Of China's Digital Inclusive Financial Development Otannarrowing The Urban-rural Income Gap

In the era of rapid development of digital technology,inclusive finance has entered a new stage of development.The combination of finance and technology has created a new development model for digital inclusion of inclusive finance.This development model has enhanced the breadth and depth of financial services,and enhanced convenience and availability,it will enable both urban and rural residents to participate equally in the financial system and obtain the necessary financial resources.The Chinese government has always emphasized equality of opportunity and fair distribution.However,due to China's long-standing complicated economic situation,it has been difficult to achieve.The unreasonable distribution of urban and rural financial resources has caused a serious imbalance between urban and rural economic development and widened the urban-rural income gap.At the same time,the large income gap between urban and rural areas has always been a matter closely attentioned and resolved by the Chinese government,and digital inclusive finance has made up for the lack of traditional inclusive financial development models,expanded the coverage of financial services in rural areas,and has improved The role of rural financial services ecosystem.Therefore,the development of digital inclusive finance may provide an opportunity to narrow the income gap between urban and rural areas.In order to verify this inference,this article makes full use of the existing research results and combines it with the actual background of financial development in China.Starting from theoretical research,this article elaborated on financial development theory,rural financial theory,financial inclusive growth theory,and income distribution theory,and summarized the impact mechanism of digital inclusive finance on urban-rural income gap,which is to reduce the threshold effect and ease exclusion effects and poverty reduction effects the three direct impact mechanisms and the indirect impact mechanism of economic growth as a conduction intermediary,believing that digital inclusive finance will help narrow the urban-rural income gap.Afterwards,this article comprehensively introduced the Chinese practice of digital inclusive finance and divided China's digital inclusive finance development into two phases.The first stage is the Internetization of traditional financial services.At this stage,one of the more prominent achievements of digital inclusive finance lies in the improvement and innovation of the Internet in the payment sector model.The second stage is the innovation of technology-driven financial services.The new model of digital inclusion is relying on fast iterative Internet technology to carry out a wider range of innovations in financial products or services,and they are all supported by scenarios that can actually be landed.At the same time,this article analyzes the income gap between urban and rural areas in China,and concludes that the reason for the existence of urban-rural income gap in China is that in the process of rapid economic development,there is a long period of uncoordinated development of urban and rural areas and economic development policies.There has been a clear urbanization orientation.Later,the Chinese government recognized the seriousness of the problem in a timely manner and actively took measures to ease this phenomenon.In recent years,the income gap between urban and rural areas in China has kept shrinking.In addition,through the inter-provincial comparison of the income gap between urban and rural areas in China and the development of digital inclusive finance,it is found that there is a certain relationship between them.Therefore,this paper speculates that the development of digital inclusive finance in China has a positive effect on narrowing the urban-rural income gap.In order to further test whether the above inference is correct,this paper selects relevant data for the period 2011-2015,using the urban-rural income gap ratio as an explanatory variable,the digital inclusive financial index as an explanatory variable,and the level of openness to the outside world,the industrial structure,the level of urbanization development,the fiscal expenditure ratio and economic growth indicators are used as control variables.These seven indicators are used to construct a panel regression model for empirical testing.The results show that: from a national perspective,the development of digital inclusive finance is conducive to narrowing the urban-rural income gap;from a regional perspective,looking at the development of digital inclusive finance in the eastern and central regions,it also shows a significant effect of narrowing the income gap between urban and rural areas.In the western region,the effect of digital inclusive finance development is not obvious.Therefore,in addition to the western region,the conclusions of other regions are consistent with the conclusions of this paper.Compared with other regions,the western region has not fully demonstrated the inclusiveness of the digital financial model because of its weak economic foundation,low level of digital support,and backward financial services.Finally,this article proposes relevant policy recommendations on how to better develop digital inclusive finance to narrow the urban-rural income gap and achieve balanced development of urban and rural financial services.First,China should strengthen digital infrastructure construction in rural areas to ensure that it is qualified.Based on the quality of data transmission,it provides network data services that rural consumer groups can afford for a long time.Second,it is necessary to encourage financial institutions to innovate rural digital financial service products,so that rural residents can feel the efficiency and convenience of digital financial services.Third,we should build a new generation of credit information system,which adapted to the development of digital inclusive finance in order to provide rural residents with more efficient financial services.Fourth,we need to promote universal education of digital financial knowledge and increase rural residents' digital inclusion cognitive ability;Fifth,we must actively use the joint role of other relevant factors and digital inclusive finance to help narrow the urban-rural income gap.