A Study On The Effect Of Digital Inclusive Finance On Farmers’ Income Increase In Henan Province

The strategic goal of solving the "three rural issues" in the new era is to comprehensively revitalize the countryside,achieve high-quality and efficient agriculture,livable and workable rural areas,and rich farmers,and the income of farmers will continue to grow faster than that of urban residents.The 2016 Hangzhou Summit formally proposed and defined the concept of digital financial inclusion.According to current research,the development of digital inclusive finance can effectively improve financial accessibility,reduce financial exclusion,and achieve farmers’ income.With the rapid development of China’s Internet,digital inclusive finance has gradually become an important part of China’s inclusive financial strategic framework and plays an important role in the national financial reform and development strategy.Governments across the country have made a lot of explorations around digital inclusive finance,which has greatly promoted the overall development of digital inclusive finance in China.Based on the actual situation of digital inclusive finance in Henan province,this paper studies the effects of digital inclusive finance on the income of rural residents by combining theoretical and empirical analysis.Firstly,the paper discusses the mechanism of the influence of digital inclusive finance on the income of rural residents,and finds that digital inclusive finance can not only improve the availability and acceptability of financial services for rural residents,but also directly affect rural residents’ income,stimulate rural residents’ entrepreneurial and employment vitality,and reduce the gap between rural and urban income distribution,thus indirectly promoting rural residents’ income.Secondly,the current situation of digital inclusive finance development in Henan Province is studied.Then,using panel data of 17 cities in Henan Province from 2011 to 2020,the effect of digital inclusion finance on rural residents’ income growth was studied by using fixed effect model.The research showed that the development of digital inclusion finance can effectively increase farmers’ income,and the depth of digital inclusion finance utilization had the most obvious effect on income,followed by the coverage,digital inclusion and the strongest effect on low-and middle-income residents.Finally,the paper puts forward some suggestions for the development of digital inclusive finance in Henan Province from the angle of increasing strategic determination,unremitting development of digital inclusive finance,developing digital inclusive finance according to local conditions,utilizing financial technology,developing digital inclusive finance flexibly and innovatively,doing good publicity work,developing digital inclusive finance in a balanced way between supply and demand,strengthening innovation and supervision,and providing higher quality digital inclusive finance.