Micro-evidence And Mechanism Research Of Digital Finance To Alleviate Relative Poverty

At present,China’s absolute poverty problem has been solved,and the focus of China’s poverty alleviation work will be shifted in the future.How to alleviate the relative poverty problem and realize common prosperity will be the focus.At the same time,the rapid development of financial services with Internet technology,the formation of digital finance has obvious inclusive characteristics,or can make up for the relative poor deficiencies in financial services.Under the dual background of the rapid development of digital economy and the urgent need to solve the problem of relative poverty,it is of great practical significance to explore the relationship and internal mechanism between the two.First of all,it is difficult to unify the measurement methods of relative poverty at present,but a large number of studies show that the measurement of relative poverty is not only limited to income indicators,but also needs to pay attention to the deprivation of the most basic opportunities and rights in the process of human development from multiple perspectives.Therefore,this paper selects 18 indicators from three dimensions of resource endowment,social participation and quality of life,based on the data of China Household Tracking Survey Database(CFPS)in four periods 2012,2014,2016 and 2018,to construct a multi-dimensional and multi-angle measurement index system of relative poverty.Secondly,combined with the corresponding years of China’s digital inclusive finance development index,based on the relevant theory,using panel probit regression analysis of the impact of digital financial development on the incidence of relative poverty,and conducted a series of robustness tests.Thirdly,considering the effect of digital finance on different financial bases and people with financial literacy,a sample regression is conducted,in which the variables of financial literacy are synthesized by selecting appropriate questionnaire questions and factor analysis.Finally,using the mediating effect model,this paper analyzes whether digital finance will affect the occurrence of relative poverty by increasing households’ participation in financial activities,easing credit financing and improving their subjective social status.The study found that the development of digital finance has significantly alleviated the incidence of relative poverty among households,especially in rural areas and areas with poor traditional financial infrastructure.The improvement of basic financial literacy will improve the poverty reduction effect.In the three sub-dimensions of digital finance development,coverage and depth of use are important dimensions of digital finance function,but the impact of digital support services is not significant.In addition,the mechanism analysis shows that promoting family participation in financial activities,easing credit financing and improving their subjective social status are the specific mechanisms for the development of digital finance to alleviate relative poverty in China.In view of the above conclusions,some suggestions are put forward,such as improving the identification method of the relatively poor,intensifying the publicity of digital financial services,actively and correctly guiding the residents to use it,and inclining and focusing on measures in rural areas.