Research On The Effect Of Digital Inclusive Finance On Rural Poverty Reduction

Poverty has long been a problem to be solved in all countries in the world,especially in China.Since the reform and opening up,China has been promoting the work of poverty alleviation.Recently,the task of eliminating absolute poverty in China has been completed.But the task of poverty alleviation is not over.China calls for consolidating the achievements in poverty alleviation and avoiding large-scale return to poverty due to the pandemic.Since its birth,inclusive finance has been committed to reducing poverty.However,the "serving the rich" nature of traditional finance,inclusive finance still cannot fully achieve the goal of inclusiveness.However,with the development of the Internet,digital inclusive finance opened a new way for inclusive finance to alleviate poverty.It reduces the cost of providing financial services for poor areas and the cost of using financial services for vulnerable groups,and also helps to realize the sustainable development of inclusive finance.This paper takes 31 provinces in China from 2011 to 2020 as research samples,empirically tests the effect and mechanism of digital financial inclusion on rural poverty reduction,and further studies regional heterogeneity using mediation models,moderated mediation models,and spatial econometric models.The empirical results show that: First,digital financial inclusion can significantly reduce rural poverty;Second,digital financial inclusion can promote rural poverty reduction through three channels-increasing rural residents’ disposable income,improving the development level of e-commerce and trickle-down effect;Finally,the poverty reduction effects of digital financial inclusion are significantly different across different regions,and the rural poverty reduction effect is more obvious in areas with developed transportation,the group with low per GDP and the western region of China.Based on theoretical research and empirical analysis,this paper puts forward the following suggestions for digital inclusive finance to promote rural poverty reduction:(1)Increase financial subsidies to improve infrastructure construction and improve rural digital inclusive financial services.(2)Increase the support of rural digital inclusive finance to increase the income of rural residents.(3)Improve the transportation facilities in rural areas and ensure the sound development of rural e-commerce poverty alleviation.(4)Deepen the linkage mechanism of regional cooperation and accelerate the release of spatial heterogeneity of digital inclusive finance.