Research On The Impact Of Digital Financial Inclusion On Common Prosperity

Since the 20 th century,China’s total economic output has grown rapidly,but problems such as regional gaps,urban-rural gaps,and group gaps have become increasingly prominent,and transforming the mode of economic development and promoting common prosperity have become the key topics to promote China’s modernization.After the reform and opening up,Comrade Deng Xiaoping repeatedly stressed common prosperity and pointed out: Socialism is not about a few people getting rich and the majority getting poor.In 2021,Xi Jinping pointed out: In the new journey of building a modern socialist country in an all-round way,we must put the promotion of common prosperity of all the people in a more important position,be down-to-earth and make contributions for a long time,and work more actively and effectively towards this goal,promote all-round human development and social progress,and make the people’s sense of gain,happiness and security more fulfilling,more secure and more sustainable.In recent years,with the accelerated integration of a new generation of digital technology and inclusive finance,digital inclusive finance has begun to bloom and become a new stage and trend in inclusive financial practice.Digital inclusive finance is committed to solving the "last mile" problem of financial services,using digital technology to provide financial services to vulnerable groups excluded by traditional finance,such as farmers,urban low-income people,and small and medium-sized enterprises,so digital inclusive finance is widely regarded as an important way to promote common prosperity.When collating and analyzing the existing research results,it is found that compared with advocating the active use of digital inclusive finance to promote common prosperity in practice,the current academic research on the relationship between digital inclusive finance and common prosperity is still relatively lacking,and it is difficult to provide strong guidance for practice.Therefore,this paper attempts to discuss the impact of digital financial inclusion on common prosperity from both theoretical and empirical levels,which has important theoretical and practical significance for promoting the sound economic and social development of China and realizing socialist modernization.Specifically,this paper focuses on the following three questions:(1)Does digital financial inclusion have an impact on common prosperity?(2)If so,what is the mechanism of the impact,specifically what are the direct effects,indirect effects and nonlinear effects?(3)What measures should China take to develop digital inclusive finance and improve the level of common prosperity?Starting from the data at the level of 30 provinces and cities in China from 2011 to 2020,this paper first uses the method of theoretical analysis to explore the answers to the first two questions.First,the use of mathematical models to demonstrate the positive effect of the development of digital inclusive finance on common prosperity,proving that the deep integration of digital technology and inclusive finance is conducive to providing more low-cost credit funds for more low-risk uncollateralized borrowers,effectively alleviating the problem of financing difficulties and expensive financing,thereby alleviating financial exclusion,stimulating the vitality of micro-subjects,promoting economic development,narrowing income gaps,and achieving common prosperity.Second,the impact mechanism is further analyzed,and the results show that the direct effects of digital financial inclusion can affect common prosperity through economic growth effects,income distribution effects and poverty reduction effects.Indirect effects can affect common prosperity through technological innovation and regional entrepreneurship.Secondly,the development level of common prosperity is systematically measured,and analytical tools such as Dagum Gini coefficient,Kernel density estimation,and Moran index are used to analyze the regional differences,sources of differences,and evolution trends of common prosperity development level.Finally,based on macro data,this paper uses fixed-effect model,mediating effect model,threshold model and other methods to test the reliability of the theoretical analysis results,and concludes as follows:(1)The impact of digital inclusive finance on common prosperity is significantly positive,and the three dimensions of digital inclusive financial coverage,depth of use and digital payment service degree also have a significant positive impact on common prosperity.(2)From the perspective of different regions,digital inclusive finance has a significant positive impact on the common prosperity of the eastern,central and western regions of China,but has the lowest impact on the western region.(3)Digital inclusive finance can affect common prosperity through the transmission channels of technological innovation and regional entrepreneurship.(4)Digital financial inclusion has a nonlinear relationship of "diminishing marginal effect" to promote common prosperity.Based on the above conclusions,in order to narrow the problem of imbalance and insufficient development and better play the positive promotion effect of digital inclusive finance on common prosperity development,this paper puts forward several policy suggestions:(1)Digital empowerment of inclusive finance and improvement of digital inclusive financial ecology.(2)Strengthen overall planning and coordination,and strengthen the balanced development of digital inclusive finance for common prosperity.(3)Guide digital finance to strengthen support for technological innovation and regional entrepreneurship.(4)Cultivate financial literacy and financial literacy,and increase the penetration rate of digital financial inclusion.