Research On The Impact Of Inclusive Finance On The Urban-rural Income Gap

In order to ensure that my country will fully build a well-off society in 2020,governments around the world have called for precise poverty alleviation,which has helped many poor residents get rid of poverty.However,it cannot be ignored that the disadvantages of the dual urban-rural economic structure still exist,and the income distribution of urban and rural residents in my country is still uneven.Finance can effectively improve the income gap between urban and rural residents by regulating factor circulation and improving resource allocation.Therefore,at the Third Plenary Session of the Eighteenth Central Committee,my country officially proposed the development of inclusive finance.In this context,local governments continue to promote the development of inclusive finance,and promote the continuous enrichment of inclusive finance in our country,the continuous innovation of service forms,and the continuous improvement of inclusiveness.Inclusive finance seems to have started from a financial development framework.A development strategy that has risen to the national level.Therefore,if we can accurately measure the development level of inclusive finance in our country now,and then explore the impact of inclusive finance on the urban-rural income gap will provide a scientific theoretical reference for the country to formulate follow-up inclusive financial policies and narrow the urbanrural income gap.Based on the combing of relevant literature,this paper first defines the research scope of inclusive finance and the income gap between urban and rural areas,and then analyzes the inclusive finance pairs with the help of dual economic structure theory,financial development theory,rural finance theory and financial inclusive growth theory.The impact of the urban-rural income gap.Then use the financial threshold effect,financial exclusion effect,and poverty effect to analyze the mechanism of inclusive finance’s effect on the urbanrural income gap.Finally,based on China’s financial development and data acquisition,construct a general inclusive financial index from the three dimensions of financial service availability,financial service use,and financial service quality,and use the entropy weight after measuring the general inclusive financial index The law combines the general inclusive financial index and the digital inclusive financial index into an inclusive financial index.Through the analysis of the inclusive financial index,I found that the level of inclusive financial development is rising and there are regional differences.In the empirical part,the panel data of 31 provinces are used to construct a static panel model and a threshold panel model to test the relationship between inclusive finance and urban-rural income gap.The static panel regression results show that inclusive finance can significantly reduce the urban-rural income gap.However,in different regions,inclusive finance has different impacts on the urban-rural income gap.Among them,inclusive finance has the most significant impact on the central region,followed by the western region,and the eastern region the least.The results of the threshold panel show that both inclusive finance and industrial structure have a single threshold.When inclusive finance or industrial structure crosses the threshold,inclusive finance will expand the convergence effect on the urban-rural income gap and can narrow the urban-rural income to a greater extent.gap.Higher education has a double threshold.When the higher education level is at a lower or higher stage,inclusive finance will narrow the urban-rural income gap;when the higher education level is in the middle stage,inclusive finance will widen the urban-rural income gap.According to the difference in the level of inclusive financial development in eastern,central and western China,and the impact on the urban-rural income gap,it is proposed to improve the quality of financial services in the eastern region,strengthen the construction of financial infrastructure in the central and western regions,improve the level of digital inclusive financial services,and speed up Recommendations for upgrading industrial structure.