Research On The Impact Of Digital Inclusive Finance On Urban Rural Income Gap Under The Background Of The Digital Divide

The excessive income gap between urban and rural areas has always been an urgent problem to be solved in China.Affected by the urban-rural income gap,consumption in rural areas is sluggish and domestic demand is insufficient,which is not conducive to the optimization and improvement of the economic structure.Traditional inclusive finance has problems such as high transaction costs and an imperfect credit system,resulting in rural residents not being able to access corresponding financial services,and there is a relatively serious problem of financial exclusion.Digital inclusive finance can utilize the advantages of digital technology to expand financial coverage and effectively alleviate financial exclusion in rural areas.It is of great significance to promote the harmonious development of urban and rural economy and narrow the income gap between urban and rural areas.The focus of this study is on inclusive digital finance issues that affect China’s urban-rural income gap,and theoretical discussions and empirical analysis have been conducted.Firstly,based on reviewing existing literature,using inclusive growth theory,financial function theory,and transaction cost theory for reference,this paper constructs a path mechanism for digital inclusive finance to narrow the urban-rural income gap,and further explores the regulatory role of the digital gap between the two.At the same time,it analyzes the current situation of inclusive digital finance in China,the urban-rural income gap,and the digital divide,and constructs measurement indicators.This article uses a fixed effect model to empirically analyze panel data from 30provinces(cities)in China from 2011 to 2020,and tests its robustness through alternative explanatory variables and quantitative regression methods.It also analyzes the geographical heterogeneity and three-dimensional nature of digital inclusive finance.And use digital access gaps and digital usage gaps to test regulatory effectiveness.The results show that inclusive digital finance helps to narrow the income gap between urban and rural areas.The larger the urban-rural income gap,the more obvious the integration role of digital inclusive finance.In order to narrow the urban-rural income gap,the western region is more affected by inclusive digital finance than the eastern and central regions,and the breadth of coverage has a greater impact on the depth of use and degree of digitization.Whether it is the digital access gap or the digital usage gap,the regulatory effect is negative.When the digital access gap exceeds the threshold,inclusive digital finance will expand the urban-rural income gap.Therefore,to give full play to the effectiveness of inclusive digital finance,it is necessary to strengthen the construction of rural digital infrastructure,improve the financial literacy level of rural residents,and eliminate the digital divide;Expand financial coverage,promote the construction of credit information systems for rural residents,improve the service mechanism of financial institutions,and improve the accuracy of financial services.