The Influence Of Digital Inclusive Finance On Rural Household Poverty Vulnerabilities

Currently,China has successfully achieved significant historical victory in poverty alleviation,solving regional overall poverty,and eliminated absolute poverty.However,the problem of poverty vulnerability and the return to poverty of rural households on the edge still exists.Therefore,in the post-poverty era,it is necessary to further consolidate and expand the achievements of poverty alleviation,reduce the risk of household poverty,and achieve effective connection between poverty alleviation and rural revitalization.Digital Inclusive Finance,as an innovative way of anti-poverty in the financial sector,can enhance the diversification,scalability,and availability of financial services for rural families and vulnerable groups,and provided the possibility of alleviating rural households to poverty vulnerability from a financial perspective.Based on the theories of financial deepening,financial exclusion and poverty dynamics,this thesis analyzes the logical mechanism of Digital Inclusive Finance to alleviate poverty vulnerability.On the one hand,Digital Inclusive Finance can alleviate the credit constraints of rural poor households and enhance the livelihood welfare of rural households through multiple channels;on the other hand,it can alleviate poverty vulnerability by promoting financial asset allocation and entrepreneurship among rural households.The description of the current situation of digital inclusive finance and poverty vulnerability of rural households in China is the basis for the development of the research topic.Combing the development history and realization forms of digital inclusive finance in C hina reveals that Digital Inclusive Finance has developed into a dynamic financial system with the participation of multiple institutions and the expansion of products and services.The study summarizes the current definition and measurement methods of poverty vulnerability,and use different poverty standards to measure and analyze the level of poverty vulnerability among rural households in China.The study shows that the proportion of rural households with poverty vulnerability is decreasing as China’s poverty alleviation efforts and high-quality economic development progress.,but the increase of poverty standards will lead to a significant increase of the proportion.In order to characterize the degree of impact and mechanism of Digital Inclusive Finance on rural households’ Poverty Vulnerability,three-year data from rural areas in China were selected as samples,and fixed-effects model and mediating-effects model are constructed for empirical testing.The study finds that,first,Digital Inclusive Finance can significantly reduce rural household poverty vulnerability,and its effect is greater in terms of breadth of coverage than depth of coverage.Second,in terms of transmission mechanism,Digital Inclusive Finance can optimize financial asset allocation to plan and balance diversified investments to increase income,Digital Inclusive Finance can increase the opportunities and realities of entrepreneurship for rural households to increase income and alleviate poverty vulnerability.Third,the development level of the household’s region and the educational level of the household constrain the effectiveness of Digital Inclusive Finance in reducing poverty vulnerability.Overall,Digital Inclusive Finance plays a supportive role in poverty reduction.This thesis proposes policy recommendations based on the findings of the study.Including improving the Poverty Vulnerability identification mechanism of rural households;strengthening rural infrastructure construction,improving the level of digital inclusive finance services;improving the rural entrepreneurial environment,stimulating entrepreneurial vitality and increase rural households’ willingness to start a business:popularizing relevant financial knowledge of rural households,and improving their capacity to use and identify digital financial services.