Research On The Impact Of Digital Financial Inclusion On Common Prosperity

By the end of 2020,China had won the battle against poverty and achieved the great goal of building a moderately prosperous society in all respects,but the gap between the rich and the poor in different industries,urban and rural areas,and between different regions was still wide.Common prosperity is not only the essential requirement of Marxism,but also the ultimate goal of socialism.Under the background of socialism with Chinese characteristics in the new era,common prosperity has been endowed with richer theoretical and epochal connotations.To promote common prosperity,we need to consider development,sharing and sustainability at the same time.However,at present,common prosperity faces many challenges,such as unbalanced development,widening gap between the rich and the poor,imperfect income distribution system and aging population,which to some extent hinder the promotion of common prosperity.As an emerging form of financial business,digital financial inclusion has many advantages such as high efficiency,low threshold,facilitation and benefits.It not only expands the boundary of financial services,but also improves the depth of financial supply,which helps optimize resource allocation and promote common prosperity.However,it is worth noting that the rapid development of digital financial inclusion also accelerates the spread of financial risks and expands the penetration of financial risks.In order to verify the impact mechanism of digital financial inclusion on common prosperity,this paper uses the balanced panel data of 30 provinces(municipalities directly under the Central Government and autonomous regions)in China from 2011 to 2020,and uses the fixed effect model,moderating effect model and panel threshold model to test the relationship between digital financial inclusion and common prosperity.The findings are as follows: First,on the whole,digital financial inclusion can significantly promote common prosperity,and this conclusion still holds after overcoming the endogeneity problem and conducting robustness test;From the perspective of digital financial inclusion dimensions,coverage breadth,use depth and digitalization degree all have significant positive effects on common prosperity,and use depth has greater promotion effect on common prosperity than coverage breadth and digitalization degree.From the dimension of common prosperity,digital financial inclusion has a significant positive impact on the dimension of common prosperity development and sharing,and the promotion effect on the dimension of development is more obvious,but the positive impact of digital financial inclusion on the dimension of common prosperity sustainability is not significant.Second,the improvement of financial mismatch and labor mismatch is an important way for digital financial inclusion to promote common prosperity.Third,in the eastern region,where the institutional environment is better,financial supervision is stronger and development is faster,digital financial inclusion has a stronger positive effect on common prosperity.Fourth,due to the existence of the digital divide,there are significant differences in the impact of digital financial inclusion on common prosperity.That is,the driving effect of digital financial inclusion on common prosperity is more obvious in regions with more developed digital infrastructure and higher Internet penetration rate.The main innovation points of this paper are as follows: First,the related research on common prosperity mainly focuses on discussing its connotation and realization path,and few literatures explore the measurement method of common prosperity.Based on this,this paper enriches the common prosperity index system on the basis of the existing research,and builds the common prosperity index through the entropy method to expand the related research on the measure of common prosperity.Second,at present,most of the discussion about common prosperity stays at the theoretical level,and few literatures test the realization path of common prosperity through empirical analysis.Based on this,this paper explores the influence mechanism of digital financial inclusion on common prosperity from the perspective of digital financial inclusion,and expands the empirical research on common prosperity.Third,due to the short development time of digital financial inclusion,common prosperity has gradually become a topic of academic attention in recent years,and there is not much discussion about the relationship between the two.Based on this,from the perspective of financial mismatch and labor mismatch,this paper deeply analyzes its mechanism role in the process of digital financial inclusion affecting common prosperity.In addition,digital divide,institutional environment,financial regulation and other factors are incorporated into the research framework,which further enriches the related research in the field of digital financial inclusion and common prosperity.