Research On The Effectiveness Of PKU＿DFIIC

The concept of inclusive finance has been receiving attention since it was proposed and has received the attention of the Chinese government after it was introduced into China.With the development of technology,the form of inclusive finance has also undergone some changes,and from traditional inclusive finance,digital inclusive finance has been derived from digital technology.As the latest form of inclusive finance,digital inclusive finance has become the mainstream of inclusive finance in China by its unique advantages,although it started late.In the study of the development of digital inclusive finance,academics choose to quantify it in the form of indices to facilitate the follow-up of related research work.However,a truly good digital inclusive finance index that can measure or reflect the degree of development of digital inclusive finance,and a digital inclusive finance index that can represent digital inclusive finance,should be able to reflect the ultimate goal of inclusive finance.The purpose of inclusive finance is simply to promote equity and reduce the gap,which also includes the urban-rural income gap.Therefore,the development of digital inclusive finance must be accompanied by the reduction of urban and rural incomes,and an effective digital inclusive finance index should be able to reflect this phenomenon.However,according to previous literature,almost no scholars have judged the validity of the digital inclusive finance index from this perspective,and relevant studies have focused only on the composition of the index and whether the underlying data are reasonable.The article selects the perspective of insufficient previous studies described above as a way to verify the validity and rationality of the Digital Inclusive Finance Index.The Peking University Digital Financial Inclusion Index of China is selected as a representative to study its validity.On the one hand,the index is more authoritative,and representative,and has a high usage rate,which makes its testing more meaningful.On the other hand,from the structural point of view,it is noted that the digitalization degree dimension among the three dimensions of the index,corresponds to the degree of digital development.The impact of digitalization on bridging the gap between different groups can be positive,helping to solve the "last mile" problem,or negative,creating a "digital divide"."Only the digitalization combined with financial inclusion is the "digital" embodied in digital inclusive finance.Therefore,it is difficult to measure the degree of digitalization in digital inclusive finance,and whether this dimension in the index has been measured correctly needs to be tested by other methods;in terms of specific indicators,there are some differences in the indicator system under the depth dimension in different years,and whether this will lead to problems in the consistency of the index also needs to be further studied.From the perspective of the underlying data,all the data in PKU＿DFIIC come from the data of the Alipay system of Ant Group,which is not the entire digital inclusive finance in China,so the data may not be comprehensive enough,which may also lead to the validity of PKU＿DFIIC being worth further discussion and testing.Based on the above reasons,the article chooses to take the urban-rural income gap as its representative from the perspective of digital inclusive finance itself to further explain the validity of PKU＿DFIIC,and the conclusion can also reflect the role of the Alipay system in the development of digital inclusive finance in China and its role in narrowing the urban-rural income gap to a certain extent.The article specifically selects the urban-rural income gap as the explanatory variable,The Peking University Digital Financial Inclusion Index of China as the explanatory variable,the relevant data of 31 Chinese provinces(cities and autonomous regions)from 2013 to 2020 as the sample for the empirical study,and the relevant control variables and models are selected about the previous studies.The selected data were then brought into the model to observe whether the relationship between PKU＿DFIIC and the urban-rural income gap is the same as the relationship between digital inclusive finance itself and the urban-rural income gap,i.e.,the two show a negative correlation,and the same operation was also performed by region to observe the performance of each region.The same empirical evidence was also conducted on the three dimensions of PKU＿DFIIC to observe the performance of the three dimensions in reflecting the purpose of financial inclusion,and then to justify their validity nationwide and by region.The results show that the validity of the total index and the other dimensions is somewhat demonstrated nationwide and by region,except for the depth of use dimension,which may be somewhat problematic in central China,and the validity of the depth of use dimension is somewhat demonstrated nationwide and in eastern and western regions of China.The results also suggest that the development of China’s Alipay system can reflect the development of digital financial inclusion in China to some extent at least from 2013 to 2020 and that the development of the Alipay system can reduce the income gap between urban and rural areas in China during these years.In addition,the article also finds the role of each control variable on the urban-rural income gap in the empirical study,and that the urban-rural income gap in China is still large.Based on the research and findings,the article gives the following suggestions:first,pay attention to the concept of digital inclusive finance and its index composition,and make reasonable use of the digital inclusive finance index;second,promote the development of digital inclusive finance to facilitate balanced economic development.