Research On The Impact Of Digital Inclusive Finance On Urban-rural Income Gap In China

Since the reform and opening up,China’s economy have developed rapidly and inclusive finance has entered a new phase of development with the acceleration of digitalisation.The 20 th Party Congress proposed to accelerate the digitalisation and transformation of inclusive finance and to stimulate quality economic and social development through quality financial services.The integration of finance and technology has created a new digital development model of inclusive finance,making financial services broader,deeper,more convenient and more accessible,enabling rural and regional residents to be equitably integrated into the financial system and receive the financial resources they need.And the development of inclusive digital finance is,in a real sense,an opportunity to narrow the gap between the urban and rural rich and poor.To verify this conjecture,this paper makes full reference to existing research findings and relates them to China’s financial development.It also analyses the income gap between urban and rural China.Empirically,Using relevant panel data from 31 provinces,autonomous regions and municipalities directly under the Central Government from 2011 to 2021,This paper treats the Thiel index(theil)as the explanatory variable,Taking industrial structure(is),economic development level(pgdp),the level of financial agriculture and forestry expenditure(afe)and opening level(open)as control variables,Taking the digital financial inclusion index(index)as an explanatory variable,Digital financial inclusion index can be further divided into three dimensions: namely,coverage breadth of digital financial services,use depth of digital financial services and digitalization degree of digital financial services according to relevant theories,Using stata measurement software to establish panel regression model research on the development of inclusive finance,First,the initial diagnosis of the panel data,Descriptive statistics,stationarity and multicollinearity tests were used to investigate the suitability of the data,A fixed-effects study was then used to analyze the impact of digital financial inclusion development on the urban-rural income gap.At the same time,the impact of inclusive digital financing on the urban-rural income gap is disaggregated by size and region,which makes the study more scientific and robust.The empirical conclusion of this paper is analyzed in detail,and finally the robustness test is conducted.Therefore,we believe that in China,The development of inclusive digital finance can help bridge the gap between urban and rural areas.