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

The 14th Five-Year Plan clearly puts forward the realization of common prosperity as an important strategic goal of China,but the long-standing urban-rural resource distribution caused by the dual structure,which leads to the urban-rural income gap in China is still very prominent.On the road to promoting common prosperity,we must be soberly aware that the problem of unbalanced economic development is prominent,and the income gap between urban and rural areas is too large.In the long run,it is not conducive to the coordinated development of China’s economy and hinders the realization of common prosperity.Digital inclusive finance lowers the threshold of financial services with its advantages of low cost and high efficiency,makes financial services more extensive,and provides equal financial services for vulnerable groups such as "three rural areas" and small and micro enterprises that are excluded from the financial system.Rural residents can influence the urban-rural income gap by gaining access to more inclusive financial services at lower prices,leading to greater opportunities to increase their incomes.By referring to a large number of literatures,this thesis clarifies the concept of digital inclusive finance and the causes of urban-rural income gap,clarifies the research perspective of existing research,and determines the research focus of this thesis.By analyzing the current situation of digital financial inclusion and urban-rural income gap,we will grasp the development trend of the two.Through theoretical analysis,the theoretical basis and mechanism of the impact of digital financial inclusion on urban-rural income gap are expounded,and then the research hypothesis is proposed.On the basis of theory,based on the panel data of 30 provinces in China from 2011 to2020,a spatial Dubin model was constructed,and the spatial spillover effect of digital financial inclusion on urban-rural income gap was empirically tested,and its heterogeneity was explored from different regions and dimensions.Finally,from the perspective of farmers’ income structure,this thesis constructs an intermediary effect model to explore the influence mechanism of digital inclusive finance on urban-rural income gap.Based on theoretical and empirical analysis,the following conclusions are drawn:(1)In terms of direct effects,digital financial inclusion can significantly narrow the income gap between urban and rural areas.In terms of spatial effects,there is a significant spatial correlation between digital inclusive finance and urban-rural income gap globally,showing "high-high agglomeration" and "low-low agglomeration" locally.There is a significant spatial dependence on the urban-rural income gap,and there is a significant spatial spillover effect on the impact of digital financial inclusion on the urban-rural income gap.(2)There is regional heterogeneity in the spatial spillover effect of digital inclusive finance on the urban-rural income gap.The spillover effect on the western region with large income gap between urban and rural areas is stronger.(3)There is heterogeneity in the spatial spillover effect of digital financial inclusion on urban and rural income gap.The development of coverage has a positive effect on the convergence of urban and rural income gap in surrounding areas,while the effect of depth of use and digitalization is not significant.(4)Digital inclusive finance can narrow the income gap between urban and rural areas by increasing the wage income and operating income of rural residents.Combined with empirical and current situation analysis,this thesis puts forward targeted suggestions from the aspects of infrastructure construction,farmers’ financial literacy,financial supervision and credit reporting system.