An Empirical Study On Digital Inclusive Finance Promoting Common Prosperity

Common prosperity is the essential requirement of China’s socialism,the common vision of all people,and an important stage goal in the process of realizing communism.The Proposal of the Central Committee of the Communist Party of China on Formulating the 14 th Five Year Plan for National Economic and Social Development and the Vision of the 2035 Year Plan,which was deliberated and adopted at the Fifth Plenary Session of the19 th Central Committee of the Communist Party of China,clearly points out that China will step into the level of moderately developed countries by 2035,and the goal of common prosperity will make substantial progress,making solid steps towards achieving common prosperity for all people.As an emerging field in the financial industry,digital inclusive finance has added strong impetus to economic development and helped to improve the inclusiveness and accuracy of inclusive finance.Therefore,as an important factor in promoting high-quality economic development in China,it is of theoretical significance to explore whether digital inclusive finance can promote the realization of common prosperity.Based on 24573 samples from 29 provinces/autonomous regions/municipalities other than Xinjiang,Tibet,Hong Kong,Macao and Taiwan in 2015,2017 and 2019 in the China Household Finance Survey(CHFS),this paper uses the equal weight method to build an indicator system of common prosperity,and uses the benchmark regression model to analyze digital inclusive finance and its coverage Analyze the effect of the three sub dimensions of depth and digital degree in promoting common prosperity,and test whether the four variables of entrepreneurial activity and family entrepreneurship,digital tools and financial literacy have a conductive role in the process of digital inclusive finance promoting common prosperity.robustness test the benchmark results using four methods:quantile regression,instrumental variable method,replacement of explained variables and elimination of municipalities directly under the Central Government,Finally,heterogeneity tests were conducted on the samples from both regional and urban-rural perspectives.The results show that digital inclusive finance and its three sub dimensions of coverage,depth of use and digital degree have a significant positive impact on the process of promoting common prosperity;Both entrepreneurial activity and family entrepreneurship can be used as mechanism variables in the process of digital inclusive finance promoting common prosperity,and digital tools such as smart phones and individual financial literacy can be used as moderating variables;When digital inclusive finance promotes the process of common prosperity,there is significant heterogeneity between the eastern,central,western and urban and rural areas,and digital inclusive finance plays a more significant role in promoting the realization of common prosperity in the central,western and rural areas.Based on the above conclusions,this paper puts forward policy recommendations for digital inclusive finance to better promote common prosperity from the perspective of government and financial institutions: at the government level,the government needs to increase the development of digital inclusive finance;The government should tailor measures to local conditions and formulate differentiated strategies for deepening digital inclusive development;The government should encourage the public to start businesses based on the slogan of "mass entrepreneurship,mass innovation";The government should strengthen the supervision of digital inclusive finance.At the social level,financial institutions should accelerate the innovation of digital inclusive financial products;Financial institutions help stimulate entrepreneurial vitality;Financial institutions should strengthen the popularization of financial knowledge among the public.