An Empirical Analysis Of The Impact Of China's Inclusive Financial Development On The Income Gap Between Urban And Rural Residents

In 2013,China formally proposed the development of inclusive finance to reduce poverty and improve the status of imbalanced development among regions.The large income gap between urban and rural residents in China is an important manifestation of imbalanced development.In 2018,the ratio of per capita disposable income between urban and rural residents was 2.7.It is unclear whether the development of inclusive finance will reduce the income gap between urban and rural residents.This article focuses on the impact of China's inclusive financial development on the income gap between urban and rural residents.The existing evaluation of inclusive financial development has traditionally used financial indicators such as banks to construct inclusive financial indexes.However,with the development of the Internet and digital finance,Digital finance represented by Alipay has played an important role in the development of inclusive finance,so this article attempts to construct an inclusive financial index that includes traditional financial indicators and digital financial indicators,in order to more accurately evaluate the current status of inclusive financial development.First,this article reviews the direct,indirect,and indirect mechanism of the impact of inclusive finance on the income gap between urban and rural residents by reviewing the background,development history,and theoretical basis of inclusive finance.Then,through the principal component analysis,the traditional financial indicator system represented by financial institution banks is synthesized into the traditional inclusive financial index,and then the digital financial indicator system represented by Alipay is synthesized into the digital inclusive financial index through the analytic hierarchy process.The weighted synthetic inclusive financial index is used to evaluate the development status of inclusive finance in China.Finally,the panel threshold model is used to empirically analyze the influence relationship between the inclusive financial index and Theil index to measure the income gap between urban and rural residents,and compare the difference between the impact of traditional inclusive finance and digital inclusive finance on the income gap between urban and rural residents.The analysis results and thresholds of the inclusive financial index put forward development countermeasures.The empirical results show that the inclusive financial index has double thresholds ? = 43.67 and ? = 55.81.The influence coefficients of the inclusive financial index on the income gap between urban and rural residents are negative,and the higher the threshold,the smaller the impact coefficient.The development of inclusive finance has a convergence effect on the income gap between urban and rural residents,and the convergence effect weakens as the threshold increases.The classical inclusive financial index has a single threshold,and the digital inclusive financial index does not have a threshold,indicating that digital inclusive finance has a more significant effect on the promotion of inclusive financial development than traditional inclusive finance,and it reduces urban and rural income.Gap contribution is more significant.Digital technology has achieved significant results in reducing the cost of financial services and improving the convenience of financial services.In the future,the construction and support of digital inclusive finance should be strengthened in order to better achieve the development of inclusive finance and improve regional development imbalances.The current situation helps to build a well-off society in an all-round way.