Research On The Impact Of Digital Financial Development On Rural Residents' Income Growt

Digital finance is a new business form in the financial field based on the development of modern information technology such as network and communication services,cloud computing,etc.It can enable the population with insufficient financial services to enjoy a variety of financial services provided by various financial institutions in different ways for a long time.It has the characteristics of inclusivity from the beginning of its development,and plays an irreplaceable role in the development of inclusive finance.In 2022,the central file No.1 first proposed to build a digital village,and in this year,the central file No.1 put digital village construction in a prominent position,and proposed to expand the agricultural and rural big data application scenarios,strengthen rural revitalization financial services,and promote the development of smart agriculture.It shows that China attaches great importance to digital assistance in rural revitalization.Studying the impact of digital financial development on rural residents’ income growth can fully improve the effectiveness of inclusive financial services for rural revitalization,and is of great significance for achieving the goal of rural revitalization in China.Based on the research results at home and abroad,this study examines the impact of digital financial development on the income growth of rural residents from the perspective of theoretical and empirical analysis.Firstly,based on summarizing relevant literature and theories,this study explores the impact mechanism of digital financial development on the income growth of rural residents.By effectively reducing the cost of financial services,digital finance can not only improve the availability of financial services for rural residents,but also greatly alleviate the financial constraints of rural residents,directly promote the income level of rural residents,indirectly improve the income level of rural residents through economic growth,entrepreneurship,employment,income distribution and other mechanisms,and has a spillover effect on the surrounding areas.Secondly,the development of digital finance and rural residents’ income growth status are systematically analyzed,and based on theoretical analysis and status analysis,a spatial econometric model is established to study the impact of digital finance development on the income growth of rural residents during the period of 2011-2020.The research shows that the development of digital finance can significantly improve the income of rural residents,and has a significant positive spatial spillover effect on the income growth of rural residents in neighboring areas.Specifically,it is found that the development of digital finance to promote the income growth of rural residents is mainly reflected in the coverage and depth of service.From the perspective of regions,there is a certain spatial heterogeneity in the role of income increase in the east,middle and west areas.In order to further analyze the impact of digital finance on the income of rural residents,this paper decomposes the income of rural residents according to the source of income.The results show that the development of digital finance has a significant role in promoting wage income,business income and property income,and has little impact on transfer income.Through the test of the mechanism,the result shows that the development of digital finance has a positive effect on the income of rural residents through economic growth,entrepreneurship,employment and income distribution.Finally,in order to better play the role of digital finance and improve the efficiency of rural financial services,combined with the results of empirical analysis,it is proposed to strengthen the construction of digital infrastructure and accelerate the development of digital finance in rural areas,improve the education level and financial literacy of rural residents,strengthen regional cooperation and give play to the spillover effect of digital finance,optimize the income structure of rural residents and promote the diversification of rural residents’ income increase channels,adjust measures to local conditions and give full play to the transmission role of the intermediary mechanism in different regions,strengthen financial supervision,promote the healthy and orderly development of digital finance and other policy recommendations to promote rural residents’ income.