Research On The Impact Of Digital Inclusive Finance Development On The Urban-rural Income Gap In Shandong Provinc

In recent years,China’s economy has continued to develop,and although the income gap between urban and rural areas has declined,it is still at a high level.Shandong Province is a major economic province in China,the total GDP has always been in the forefront of the country,is an important province to promote the steady growth of the national economy.At the same time,Shandong Province is also a traditional agricultural and population province,the dual structure of urban and rural areas has always existed,and the income gap between urban and rural areas is large.Solving the income gap between urban and rural areas is the key to achieving common prosperity for all people.The Shandong provincial government has long been committed to the development of inclusive finance,which has played a vital role in improving the income gap between urban and rural areas,but traditional inclusive finance mainly relies on offline outlets to provide financial services,with high costs and limited coverage.As an emerging product of the deep integration of digital technology and inclusive finance,digital inclusive finance can make up for many shortcomings of traditional inclusive finance,allow more groups to enjoy convenient financial services,and inject new vitality into inclusive finance.Starting from this background,this paper deeply studies and analyzes the impact of the development of digital inclusive finance on the income gap between urban and rural areas in Shandong Province,and puts forward policy suggestions on this basis.This paper first sorts out the existing literature at home and abroad,introduces the relevant concepts and theoretical basis,and then analyzes the impact mechanism of digital inclusive finance on urban and rural income gap and puts forward corresponding research hypotheses.Subsequently,the specific status quo of the development of digital inclusive finance and the income gap between urban and rural areas in Shandong Province was analyzed,and the Thiel Index was calculated to measure the income gap between urban and rural areas in Shandong Province.Next,this paper uses panel data from 16 prefectures and cities in Shandong Province from 2011 to 2020 to construct a two-way fixed effect model and a panel threshold model for empirical analysis.The conclusion shows that from the results of the return of the province,the development of digital inclusive finance shows a positive U-shaped relationship between urban and rural income in Shandong Province.Judging from the sub-regional results,digital inclusive finance has different impacts on the economically underdeveloped and economically developed areas of Shandong Province.The urban-rural income gap in economically underdeveloped areas has narrowed more than in developed areas;From the perspective of sub-dimensional results,the three sub-indicators of digital inclusive finance have different effects on the income gap between urban and rural areas in Shandong Province,and the breadth of coverage and the depth of use show a positive U-shaped relationship on the income gap between urban and rural areas,while the degree of digitization will expand the income gap between urban and rural areas;Judging from the results of the return of the panel threshold,there is a single threshold for the impact of digital inclusive finance on the income gap between urban and rural areas in Shandong Province,and in areas with low per capita GDP,the role of digital inclusive finance in narrowing the income gap between urban and rural areas is more obvious.Finally,based on empirical conclusions and combined with the specific conditions of Shandong Province,corresponding policy suggestions are put forward: First,strengthen the construction of digital infrastructure in rural areas;2.Encourage innovation in rural digital inclusive financial products;3.Promote the popularization of digital financial inclusion knowledge;Fourth,strengthen the supervision of digital inclusive finance.