Analysis On The Poverty Reduction Effect And Path Of China’s Digital Financial Inclusion

In 2021,my country achieved its first centenary goal,solved the problem of absolute poverty historically,and built a moderately prosperous society in an all-round way.Therefore,the goal of my country’s poverty alleviation has shifted to solving multi-dimensional relative poverty,which has also become the key to achieving common prosperity for all people.link.As an important means of poverty alleviation,financial poverty alleviation is also constantly being developed and updated.The emergence of inclusive finance has improved the coverage of financial services,but it is still difficult to avoid the phenomenon of financial exclusion in remote areas and poverty-stricken areas.The emergence of finance has further made up for the shortcomings of traditional inclusive finance.Through the Internet,financial services can reach all corners,further narrowing the gap between the rich and the poor,and effectively solving multidimensional relative poverty.Based on the analysis of financial deepening theory and unbalanced growth theory,this thesis firstly obtains the mitigation effect of digital financial inclusion on multidimensional relative poverty,and analyzes three paths of material,human and social capital from a theoretical perspective.Secondly,by referring to the relevant literature,an index system for evaluating multi-dimensional relative poverty families is constructed,and the AF multi-dimensional poverty measurement method is used to calculate and determine whether a family is in multi-dimensional relative poverty.The development scale of digital inclusive finance is reflected from three aspects: digital payment,internet credit and insurance.The digital inclusive finance index of Peking University is used to comprehensively analyze the development status of digital inclusive finance in my country,and the correlation between the two is preliminarily analyzed.Then,a Probit model is constructed to perform panel regression on my country’s digital financial inclusion and household multidimensional relative poverty.The validity and stability of the results are determined through robustness testing and endogeneity discussion,and further heterogeneity analysis is carried out.Finally,by constructing a moderating effect and mediating effect model,the path role of credit,human and social capital in alleviating the multidimensional relative poverty of households through digital financial inclusion is tested.The empirical results show that digital financial inclusion can indeed significantly reduce the probability of households falling into multi-dimensional relative poverty,and there is a slight difference between urban and rural areas.Regions and eastern regions;in the credit path,it is divided into bank credit and informal credit.Bank credit has no adjustment effect but informal credit plays a negative adjustment role.Digital financial inclusion achieves reduction by increasing bank credit and reducing informal loans.The role of poverty;in the human capital path,human capital plays a positive regulating role,and digital inclusive finance reduces poverty by increasing household spending on education and health care;in the social capital path,social capital plays a negative regulating role,and digital inclusive finance Poverty alleviation by improving the social ties of residents.Based on the results obtained from the empirical analysis,relevant policy recommendations are finally put forward.In order to eliminate the digital divide,digital inclusive finance should be developed and popularized in a balanced manner,and the construction of network infrastructure should be strengthened;in order to play the role of credit path,the online operation of non-bank financial institutions should be regulated,the risk of informal loans should be reduced,and the digital transformation of banks should be accelerated.Improve the availability of bank credit;in order to strengthen the intermediary and regulatory role of human capital,provide the benefits of public services such as medical care,education,and employment through digital inclusive finance,establish a diversified financial service system,and enhance residents’ social self-development capabilities;The intermediary role of capital,the establishment of special employment assistance funds,the lowering of the threshold for start-up company loans,the establishment and improvement of a long-term credit investigation mechanism,and the enhancement of people’s sense of happiness and security.