Will Digital Inclusive Finance Help Narrow The Urban-rural Income Gap

In recent years,China’s economy has developed rapidly,developed with a good momentum,and its economic aggregate has increased year by year.In the context of rapid economic development,the income gap between urban and rural areas has narrowed,but the income gap between urban and rural areas is still very large,and unbalanced development have always been some problems,which is not conducive to sustainable economic development.In order to make financial services benefit vulnerable groups such as rural areas and small,medium and micro enterprises,the United Nations proposed the concept of inclusive finance in 2006.Once inclusive finance was put forward,it has developed rapidly in China,which tends to help narrow the urban-rural income gap to a certain extent.Due to too much attention to efficiency and the neglect of fair policy preference,coupled with the influence of urban and rural dual economic structure,the development of China’s urban and rural financial system is unbalanced,the allocation of financial resources is unreasonable,and rural areas lack access to financial resources.The traditional financial system can no longer cover most rural financial consumers.Demand for financial products and services in rural and remote areas cannot be met.The development of inclusive finance is limited by time and space,and has a narrow coverage.Only some vulnerable groups can be included in the financial system.At present,it is in the bottleneck period of development,and it is urgent to break through the development restrictions.Only by promoting inclusive finance can the income gap between urban and rural areas be narrowed.In this context,the lower cost and wider coverage of digital inclusive finance has emerged.In 2016,three documents of the Advanced G 20 Principles of Digital Inclusive Finance,the G 20 Upgrading of the Inclusive Finance Indicator System,and the Implementation Framework of the G 20 SME Action Plan were officially submitted to the Hangzhou G 20 Summit for deliberation,marking a new opportunity for us to develop digital inclusive finance.Innovating and improving digital inclusive finance on the basis of inclusive finance can provide comprehensive financial products and services for the society in a low-cost and sustainable way,improve the economic income of low-income groups,and promote the economic growth in poor areas.However,whether the development of digital inclusive finance can effectively narrow the income gap between urban and rural areas is of great significance to reducing the rural poverty rate and plays an important role in supporting rural development.This paper studies the relationship between digital inclusive finance and the urban-rural income gap,and presents an empirical analysis in 31 provinces.The first three parts of this paper provide an overview of the conceptual and theoretical basis,and propose research hypotheses based on the current research status.Part IV presents an empirical analysis of data from 31 provinces from 2013 – 2019 by constructing models,interpreting sample data,and selecting study variables.First,the square term of digital financial inclusion was introduced as one of the main explanatory variables,and a regression analysis was performed at the national level.The study found that digital financial inclusion was negatively associated with urban and rural income gap in the whole sample;secondly,the national sample was divided into eastern,northeast,central and western regions to study the difference in the impact of digital financial inclusion on urban and rural income gap in different regions.Finally,based on the empirical results,the main conclusions.