Research On Digital Financial Inclusion And Urban-rural Income Gap In China

The dual urban-rural structure restricts the fair allocation of financial resources and exacerbates the uneven distribution of income.The in-depth development of inclusive finance can alleviate the income gap between urban and rural areas in China in order to meet the needs of effective demand and effectively alleviate poverty.At the same time,based on inclusive finance,digital inclusive finance relies on technology to innovate inclusive finance products and services,and has advantages in reducing costs,expanding financial services,and effectively controlling risks.China's economic development has entered a new normal,and the income gap between urban and rural areas has become increasingly important.The government has been committed to improving the income gap through the development of digital inclusion.In this paper,on the basis of the theory and the status quo,with China's 31 provinces,autonomous regions and municipalities directly under the central government data,using theil index to measure the income gap between urban and rural areas.At the same time,the digital inclusive data of Peking University Digital Finance Research Center was used as the explanatory variable of this paper.After the Hausman test,a fixed effect model was used to analyze the impact of digital inclusive on the income gap between urban and rural areas,and to explore the influence of different dimension,under different economic regions.The results show that:China's digital inclusive finance development can significantly reduce the urban-rural income gap;The effect of digital inclusive finance development in different dimensions is different;The effect of different economic belt also differs somewhat.Finally,based on the different effects of digital inclusive finance on the urban-rural income gap,this article puts forward relevant suggestions from the two aspects of government and regulators and financial institutions:Governments and regulators need to increase supervision and focus on the rational allocation of resources,at the same time,the implementation of digital financial inclusion should be implemented in different regions and dimensions;financial institutions need to strengthen digital inclusive finance's propaganda and product innovation,and the traditional banking industry should increase participation.