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

General Secretary Xi Jinping has stressed that common prosperity is an essential requirement of socialism and an important feature of Chinese-style modernization.At present,China is in the stage of effective connection between poverty alleviation and rural revitalization,and the excessive income gap between urban and rural areas will hinder the realization of the goal of rural revitalization in China,and in the long run,it is not conducive to the realization of the goal of common prosperity in China.Because common prosperity is the prosperity of all the people,but at present China’s urban and rural income gap is still a significant problem.Therefore,how to solve the gap between urban and rural income is an important issue.In order to solve the problem of large gap between urban and rural income,our government has introduced many measures.Among them,inclusive finance has been introduced in the financial level,hoping to alleviate the problem of excessive income gap between urban and rural areas through its diversified development.The research finds that the introduction of inclusive finance plays an important role in promoting the coordinated development of urban and rural areas and narrowing the income gap between urban and rural areas in the short term.However,the existing problems such as high cost and low efficiency have a significant impact on the implementation of inclusive finance.With the development of digital technology,digital inclusive finance emerges at the right moment.By virtue of the advantages of digital technology,the difficulties faced by inclusive finance can be effectively resolved.But at the same time,the application of digital technology brings about the problem of digital exclusion,which leads to the more serious "digital divide".What is the impact of digital inclusive finance on the urban-rural income gap under the dual role of inclusive finance and digital divide? Can digital inclusive finance effectively alleviate the problem of large income gap between urban and rural areas?In order to answer the above questions,on the basis of summarizing relevant literature,this thesis expounds the current characteristics of digital inclusive finance and urban-rural income gap in China,and makes a preliminary analysis of the relationship between them by using existing data.And from the distribution of income,financial development and rural financial three theory,combined with China’s basic national conditions,to pratt &whitney financial and income gap between urban and rural residents in our country deeply,this thesis discusses the mechanism of action,and put forward the corresponding assumptions,and then select China’s 31 provincial panel data from 2013 to 2020,is use tal index as the explained variable,Digital financial inclusion index as the core explanatory variable,combined with previous studies of scholars,select appropriate control variables,carry out an empirical analysis of digital financial inclusion on urban-rural income gap;In view of the more obvious urban-rural income gap in western China,this thesis explores the heterogeneity analysis of the impact effect of digital inclusive finance on urban-rural income gap in western and non-western regions.Considering that digital inclusive finance has different impacts on the urban-rural income gap due to different urbanization rates,this thesis takes urbanization rate as the threshold variable to test the threshold effect of digital inclusive finance.The findings are as follows: first,there is a u-shaped curve relationship between the development of digital inclusive finance and the urban-rural income gap.The development of digital inclusive finance in China is still in the stage of alleviating the urban-rural income gap and has not yet crossed the inflection point.Second,digital financial inclusion has a significant u-shaped impact on the urban-rural income gap in western China,while this feature is not detected in non-western China.Third,when urbanization rate is taken as the threshold variable,there is an obvious double threshold effect on the impact of digital inclusive finance development on urban and rural income.According to the research results,this thesis gives the following policy suggestions:First,accelerate the construction of financial and communication infrastructure in rural backward areas;Second,dynamic adjustment of digital inclusive financial policies based on urbanization rate;Thirdly,to strengthen the input and construction of digital inclusive finance resources in western China;Fourth,gradually ease the "digital divide" problem,to help digital inclusive finance play a greater inclusive effect.