Research On The Impact Of Digital Inclusive Finance On Family Relative Poverty

Poverty has always been a major problem that hinders high-quality economic development,and it has become a huge challenge for countries around the world to upgrade their economic structure and economic transformation and upgrading.In this context,the Chinese government has comprehensively planned the poverty reduction strategy and planned the road of poverty alleviation,one step at a time,and many measures have been taken to help alleviate poverty.It has comprehensively solved the problems of poor households’ eating and wearing,and their education,medical care and housing have been basically guaranteed.Finally,it has sounded the victory horn of the battle against poverty,and the problem of absolute poverty has been properly solved.However,the elimination of absolute poverty does not mean that the road to poverty reduction has reached the end.In the post-poverty era,poverty has a new connotation,absolute poverty has changed into relative poverty,and the characteristics of poverty have changed.In this context,further research on relative poverty is of great significance for consolidating the hard-won achievements of poverty alleviation and achieving the ambitious goal of common prosperity.As the vanguard of high-quality economic development,finance plays an important role in modern economy.The rational allocation of financial resources determines the rationality and accuracy of social resource allocation to a certain extent.It is of great significance to economic growth and is an important way to further study income distribution,asset allocation and poverty alleviation.General Secretary Xi Jinping pointed out,"Finance is the blood of the modern economy.Only when blood vessels are connected can growth be strong." In order to include groups excluded from the financial system and meet the needs of different groups for financial services and financial products,China vigorously develops inclusive finance,upholds the people-centered concept of finance,and provides reasonable financial arrangements for achieving common prosperity.With the rise and vigorous development of the digital economy,digital technology and inclusive finance are gradually integrated.As a product of the organic integration of the two,digital inclusive finance promotes the high-quality and high-level development of the financial industry,meets the financial needs of different groups more flexibly and conveniently,integrates financial resources in a digital way,reduces financial transaction costs,and improves the material capital owned by relatively poor families,thereby alleviating relative poverty and helping China ’s economy develop healthily.Based on the data of China Household Finance Survey(CHFS)in 2019,this thesis uses the Probit model to study how digital inclusive finance affects the relative poverty of households,uses the instrumental variable method to solve the endogenous problem,and analyzes the heterogeneity of urban and rural areas and different education levels.By changing the model,changing the data,hierarchical linear regression,adding province fixed effect regression and other methods,the robustness test is done to verify the reliability of the effect of digital inclusive finance on relative poverty alleviation.In addition,the impact mechanism of digital inclusive finance on household relative poverty is further analyzed.The basic regression results show that digital inclusive finance can effectively alleviate the relative poverty of households,and its comprehensive index coefficient and three sub-dimension coefficients are significantly negative.According to the results of heterogeneity analysis,based on the reasons of digital divide and low acceptance of traditional inclusive finance,compared with rural families and families with higher education level,the poverty reduction effect of digital inclusive finance in urban families and families with lower education level is significant.The mechanism test results show that digital inclusive finance can alleviate relative poverty by increasing the level of household insurance purchase,increasing the availability of financial products,and improving the allocation of household financial assets,while the mechanism of credit constraints is not significant.Finally,based on the above research conclusions,this thesis puts forward the following suggestions: First,clarify the targets of poverty alleviation in the new era,further improve the accuracy of identification and measurement of relatively poor families and populations,and ensure the sustainability of household income;second,promote the balanced construction of digital infrastructure,formulate a hierarchical plan for improving digital inclusive financial infrastructure,and refine digital inclusive financial product clusters;third,improve the social credit system,establish a comprehensive supervision mechanism throughout the credit evaluation process,and effectively improve the timeliness and pertinence of big data supervision;fourth,strengthen the popularization of financial knowledge,actively guide financial institutions to provide appropriate financial services and products,and urge financial institutions to optimize residents’ experience in the form of active contact and publicity.Fifth,improve the revenue growth mechanism,implement an active employment policy,improve the salary and welfare system,improve the labor remuneration rate,and build a fair and effective distribution mechanism.