Research On The Mechanism And Effect Of Digital Inclusive Finance To Help Rural Revitalization

The report of the 20 th Party Congress proposes to overall promotion of rural regeneration,support for the priority development of agriculture and rural areas,support for the integrated development of urban and rural areas and ensuring the fluidity of urban and rural elements.,and to promote sector,talent,cultural,ecological and organisational vitality in rural areas.Against this background,the Shanxi Provincial Government,based on the basic provincial conditions,has put forward specific strategic plans to support the revitalization of the countryside in a comprehensive manner.As finance is the driving force behind a country’s economic,it is an important part of the rural regeneration development process and can provide the necessary financial support for rural regeneration.In recent years,China has encouraged the development of a digital economy,and inclusive finance has relied on information technology and technological innovation to derive a new business model-digital inclusive finance.Digital inclusive finance can promote inclusive financial development through digital technology,reduce the costs and barriers of financial services,expand the scope of financial services,so that finance can widely benefit farmers and other It can effectively alleviate the lack of financial supply and imbalance in supply structure,It has a unique value in improving the benefits and quality of financial services in rural areas and revitalising them.Therefore,it is of great significance for Shanxi to explore what role digital inclusive finance can play in rural revitalization and how can they help consolidate the results of poverty alleviation,solve the problems of the "three districts" and promote rural revitalisation.Based on a review of domestic and international literature on digital inclusive finance for rural revitalisation,this paper argues that digital inclusive finance directly and indirectly promotes rural revitalisation,and that its benefits include.Therefore,this paper builds a rural revitalization index system based on the general requirements of rural revitalization,which is used to measure the development level of rural revitalization.Meanwhile,the Bei Jing University Digital Inclusive Finance Index is used to measure the current status of digital inclusive finance development in Shanxi Province and various municipalities.To empirically investigate the impact of digital financial inclusion on rural revitalization,a basic fixed-effects model and a fixed-effects model with additional mediating variables at two levels were developed: direct and indirect impact.The empirical findings are as follows:(1)Inclusive digital finance has a important positive contribution on rural regeneration;(2)All three aspects of digital inclusive finance significantly and positively impact rural revitalisation.(3)The level of economic development has a partly mediating role in the process of digital inclusive finance influencing rural revitalization.(4)There is a partly mediating role of industrial structure upgrading in the process of digital inclusive finance influencing rural revitalization.Based on the above results,this paper proposes inclusive digital finance responses that promote rural regeneration for the development of Shanxi: firstly,relevant government departments in Shanxi Province should increase financial expenditures to improve rural infrastructure construction;meanwhile,financial institutions should strive to raise people’s financial awareness and improve the establishment of credit systems in rural areas.Secondly,financial institutions need to develop digital,inclusive financial products,expand financial support for agriculture and increase investment in financial technology;develop diversified financial services to enhance the happiness of farmers’ life.