A Study On The Spatial Spillover Effect Of Digital Financial Inclusion On Farmers’ Income Increase

The high-quality development of an economy and society is reflected not only in the continuous growth of the total economic aggregate,but also in the fact that the fruits of development are shared by the people.Therefore,how to divide the "big pie" of income distribution is the key link of high-quality economic development.However,the large income gap between urban and rural areas prevents the majority of people from reasonably and effectively sharing the dividends of economic development.Improving farmers’ income is an important step to solve the dilemma of the large income gap between urban and rural areas.In recent years,digital inclusive finance,which is a combination of digital technology and traditional finance,has gained a firm foothold in the development of the financial market with its unique advantages of convenience and confidentiality,providing new impetus for financial development to help farmers increase their incomes.The emergence of digital financial inclusion provides efficient financial services for all strata of society,especially for rural residents with poor financial resources.Improving rural residents’ income is one of the responsibilities of digital financial inclusion.The Yangtze River Delta is one of the regions with the highest degree of economic activity in our country.There are frequent economic and trade exchanges between each other,and the spatial dependence is obvious.Therefore,the spatial spillover effect can not be considered as an independent individual.This leads to thinking about whether digital financial inclusion affects the improvement of rural residents’ income from a spatial perspective.If so,what mechanisms will be used to influence revenue growth? This paper studies this problem.This paper first defines relevant important concepts such as inclusive finance,expounds the financial development theory,trickle-down theory,Long tail theory and urban-rural dual theory,reveals the development of digital inclusive finance and the current situation of farmers’ income increase in 41 cities in the Yangtze River Delta region,and analyzes the mechanism of digital inclusive finance on farmers’ income increase and spatial spillover effect in the region.Moreland Index was used to test the spatial correlation between digital financial inclusion and farmers’ income increase,and its aggregate effect and spatial spillover effect were studied.Based on theoretical analysis and empirical results,conclusions were drawn,and relevant policy recommendations were put forward,in order to provide useful references for the modern financial system to help poverty alleviation.Main research conclusions:(1)Digital financial inclusion can increase the income of local farmers by lowering the financial threshold,improving the efficiency of capital use,improving human capital,improving the efficiency of income distribution and increasing employment opportunities.On this basis,it can promote the income increase of farmers in neighboring areas through spillover effect,innovation effect and scale effect.(2)There is a spatial correlation between the development of digital inclusive finance and the increase of farmers’ income in 41 prefecture-level cities in three provinces and one city in the Yangtze River Delta,showing a "high-high" spatial cluster in Jiangsu,Zhejiang and Shanghai,and a "low-low" spatial cluster in Anhui,indicating that there is an imbalance between the development of digital inclusive finance and the increase of farmers’ income in the Yangtze River Delta.In the coordinated development of the Yangtze River Delta,we should pay attention to the balance of regional development.The economically strong provinces drive the development of the economically less developed provinces,so as to achieve regional coordinated development.(3)Digital financial inclusion has significant spatial spillover effect,that is,the development level of digital financial inclusion can significantly promote the income increase of farmers in the local and neighboring areas.Among the three sub-dimensions,the depth and coverage breadth of digital financial inclusion can significantly promote the income increase of farmers,while the degree of digitalization can significantly inhibit the income increase of farmers.At the spatial level,among the three dimensions,the depth of use is the most important,followed by the coverage breadth,and the last is the degree of digitalization.(4)From the perspective of control variables,the level of economic development and the degree of urbanization will positively promote the increase of farmers’ income,while fiscal support for agriculture,industrial structure and fiscal expenditure have no significant impact on the increase of farmers’ income.There may be some new ideas in the research content of this paper,which is specifically reflected in the following aspects: first,most of the existing researches start from the national level.Starting from the Yangtze River Delta economic zone in a specific region,this paper studies the effect of digital financial inclusion on farmers’ income increase and spatial spillover effect in the Yangtze River Delta,which can provide theoretical basis for digital finance to help rural revitalization.Second,this paper not only studies the total impact of the development of digital inclusive finance on farmers’ income increase,but also subdivides the impact of the three dimensions of coverage breadth,use depth and digitization degree on farmers’ income level,and systematically examines the total and structural effects of the development of digital inclusive finance on farmers’ income increase,which has certain academic value.