Research On The Impact Of Digital Inclusive Finance Development On The Income Gap Between Urban And Rural Residents

During the more than 40 years of reform and opening up,my country’s economic and social development has made remarkable achievements.However,during this period,the urban-rural dual economic development mode made more resources flow to urban areas with greater economic development potential,which also led to the continuous widening of the income gap between urban and rural residents in my country.At present,my country’s economic development has entered a new normal.How to promote the balanced development of urban and rural areas and narrow the income gap between urban and rural residents is particularly important.In the past,due to the existence of financial information asymmetry and unbalanced development,the possibility of the majority of rural residents getting financial services was low.With the rapid development of digital inclusive finance in my country,traditional finance has been continuously given new connotations.By virtue of its inclusive nature and digital technology advantages,digital inclusive finance has largely made up for the high cost and high threshold of traditional finance.The low-income rural disadvantaged groups excluded from traditional finance have also gained new opportunities for development.Does the development of digital inclusive finance in my country affect the income gap between urban and rural residents? How does it work? This is the main question of this study.In order to explore the relationship between the development of digital financial inclusion and the income gap between urban and rural residents,this paper selects the provincial panel data of 30 provinces and cities in my country from 2011 to 2020,and conducts empirical analysis by constructing a threshold effect model.The study found that the impact of digital financial inclusion development on the income gap between urban and rural residents has a significant negative effect,and its convergence effect increases with the improvement of the level of economic development,which indicates that there is an economic level threshold effect and there are double thresholds.In addition,when researching the eastern,central,and western regions of the country’s data,it was found that the convergence effect of digital financial inclusion on the urbanrural income gap is different in different economic development regions in my country,which shows that the development of digital financial inclusion has an impact on urban and rural residents.There is regional heterogeneity in the improvement of income gap.Through corresponding theoretical research,empirical analysis and the current development situation in my country,some suggestions are put forward to better promote the development of digital financial inclusion: popularizing financial-related knowledge to innovate the concept of rural groups;strengthening the construction of digital financial inclusion infrastructure;Strengthen the construction of a new credit reporting system for digital inclusive finance;strengthen the construction of legal and regulatory systems for user information security,etc.