Research On The Effect Of Digital Inclusive Finance On Urban-Rural Income Gap Under The Goal Of Common Prosperity

Common prosperity is the essential requirement of socialism.To achieve common prosperity,we must narrow the income gap between regions and between urban and rural areas.At present,the unbalanced problem of urban and rural development is still very prominent.The unbalanced problem mainly reflects the income gap between urban and rural areas and the income gap between different income groups within urban and rural areas.However,the inclusion and convenience of digital inclusive finance are conducive to improving the income level of low-income groups,thus narrowing the income gap between urban and rural areas,which is consistent with the basic connotation of "prosperity" and "sharing" of common prosperity.Therefore,under the goal of common prosperity,this paper systematically studies the impact of digital inclusive finance on the income gap between urban and rural areas.This paper matches the digital inclusive finance data and CFPS data of Peking University,and empirically tests the impact of digital inclusive finance on the urban-rural income gap by using econometric analysis methods,so as to help achieve the goal of common prosperity.Specifically,this paper firstly empirically analyzes the impact of digital inclusion finance and its three sub-indexes on the urban-rural income gap from two dimensions of the income level of urban and rural residents and different urban and rural income groups,and uses the RIF univariate decomposition model to test the contribution rate of digital inclusion finance to the urban-rural income gap at each quantile.Secondly,from the two aspects of household entrepreneurship and informatization,the impact mechanism of digital inclusive finance on urban-rural income gap is studied.Finally,taking Guangdong Province as an example,this paper studies the impact of the development of digital inclusive finance on the income gap between urban and rural areas in Guangdong Province from the two dimensions of urban and rural residents’ income and the income of different urban and rural groups,in order to provide feasible schemes for Guangdong Province to achieve common prosperity.The research conclusions of this paper mainly include: first,digital inclusive finance is conducive to narrowing the income gap between urban and rural areas and between different income groups within urban and rural areas.Meanwhile,RIF decomposition results also find that whether it is characteristic effect or reward effect,digital inclusive finance has a more significant impact on low-income groups.Secondly,the indicators of digital financial inclusion have different impacts on the urban-rural income gap.Among them,the coverage breadth is conducive to narrowing the urban-rural income gap and the income gap between different income groups within urban and rural areas,and the depth of use is only conducive to narrowing the income gap between different income groups within urban and rural areas,while the digitalization degree has no significant effect.Thirdly,the analysis of the influence mechanism shows that digital inclusive finance improves the informatization level and promotes household entrepreneurship,which reduces the information asymmetry of borrowers and thus realizes the role of narrowing the urban-rural income gap.Fourthly,through case analysis,digital inclusive finance can also help to significantly narrow the urban-rural income gap in Guangdong Province.Among them,the coverage breadth has a significant effect,while the depth of use and the degree of digitization have no significant effect on the two kinds of effects.Finally,based on the research results of this paper,China should increase the construction of digital financial inclusion infrastructure,make full use of the role of digital dividend,and improve the financial literacy of residents,so as to more effectively play the inclusion of digital financial inclusion.