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

The report of the 20 th Nation Congress mentioned that we should make efforts to promote common prosperity for all people and resolutely prevent polarization,to achieve this goal,it is especially important to narrow the income gap between urban and rural areas.Based on the geographical advantages and government policies,Henan Province has achieved rapid development,and its GDP has been in the forefront of the country for many years,and the quality of life of residents has been greatly improved,but at the same time,there exists the problem of unbalanced development between urban and rural areas,and the income gap is too large.The long-term existence of urban-rural income disparity is not only detrimental to the sustainable and healthy economic development of Henan Province,but also to the harmony and stability of society.Digital inclusive finance has emerged in recent years to provide a new way for rural residents in Henan Province to increase their income through finance.Digital inclusive finance focuses on disadvantaged groups such as farmers,low-income groups and special people,so that farmers who were excluded from financial services can enjoy the benefits of finance,thus increasing the income of rural residents and regulating the income gap between urban and rural areas.So,does digital inclusive finance affect the urban-rural income gap in Henan Province?Based on this question,this paper conducts an empirical study.Based on the dual economic structure theory,KUZNETS "inverted U-shaped" theory,financial development theory,financial exclusion theory and inclusive growth theory,this paper adopts literature research method,comparative analysis method and empirical analysis method to analyze the impact of digital inclusive finance index in Henan,Three first level dimensions(coverage breadth,use depth and digitization level),and six types of business(Payment,Insurance,Fund,Investment,Credit and Investigation)on the urban-rural income gap,and the province is also divided into five regions to study the impact of digital inclusive finance on the urban-rural income gap in each region of Henan Province.The results of the study show that firstly,digital inclusive finance in Henan Province has developed rapidly in ten years,and the urban-rural income gap in Henan Province has also decreased significantly during this period,and there are large differences in the development of these two aspects among prefecture-level cities,but this gap is decreasing.Second,the development of the total digital inclusive finance index is able to reduce the urban-rural income gap among 17prefecture-level cities in Henan Province.Thirdly,by dimension,the breadth of coverage,depth of use and digitization level of digital inclusive finance can suppress the widening of the urban-rural income gap in Henan Province,and the convergence effect of the breadth of coverage is the best.Fourth,by business,all six types of digital inclusive finance businesses are negatively correlated with the urban-rural income gap in Henan Province,with the best suppression effect of credit business and money fund business,followed by payment business and investment business,and the relatively weak suppression effect of insurance business and credit business.Fifth,by region,there are regional differences in digital inclusive finance in narrowing the urban-rural income gap,with the best convergence effect in west and south Henan,the second best in central Henan,and the relatively weaker convergence effect in east and north Henan.Finally,this paper puts forward suggestions to continue to strengthen the construction of digital inclusive finance infrastructure in Henan Province,improve the financial knowledge of rural residents,innovate digital inclusive finance products,and strengthen the risk control of digital inclusive finance according to the actual situation in Henan Province.