An Empirical Research On The Impact Of Digital Inclusive Financial Development On Poverty Alleviation In China

The problem of poverty is not only an economic issue,but also a matter affecting social stability.Along with unbalanced and inadequate development,the problem has a weakness for building a moderately prosperous society in all respects and realizing the Chinese Dream of national rejuvenation.It is the most arduous task of building a moderately prosperous society in all respects to win the battle against poverty and ensure all of the rural residents living in poor be lifted out of poverty by 2020.In recent years,our government gradually uses financial means to solve the problem of poverty and it has become the consensus of all sectors of society.However,due to the profitability of traditional financial institutions,there is a huge lack of financial service in rural areas and low-income areas.It is difficult for the present financial services to meet the financial needs of the people.Therefore,the idea of developing digital inclusive finance and inclusive financial services was put forward on the G20 summit in September,2016.Since China's mobile payment and E-commerce are taking the lead in the world,we have an unique advantage in developing digital inclusive finance to root out poverty and achieve inclusive growth.However,since it's still a short time since the theory of digital inclusive finance came up,there is a great gap in the research on alleviating poverty by digital inclusive finance.Specific researches need to be strengthened.Therefore,based on the definition of relevant concepts,this article takes digital inclusive finance as the research topic,summarizes the features and advantages of digital inclusive finance and sorts out the theoretical mechanisms that digital inclusive finance affects poverty alleviation through the consolidation of existing literature,combined with the status quo of the development of digital inclusive finance in China and the actual situation of poverty alleviation.Later,in order to empirically test the impact of digital inclusive finance on poverty alleviation and further examine the mechanisms between digital inclusive finance and poverty alleviation,this paper selects panel data of 31 provinces in China from 2011 to 2015 and quotes China's digital inclusive financial index published by the Internet Finance Research Center of Peking University.We select control variables scientifically,adopt the estimation method of the dynamic panel system GMM,and conduct empirical research from two levels:the whole country as well as the eastern,middle,and western regions.The results show that the development of digital inclusive finance can significantly promote poverty reduction.The development of digital inclusive finance is significantly positively correlated with poverty alleviation.The degree of poverty reduction plays the largest role in the east,followed by the middle and the weakest in the west.This paper further empirically tests the mechanism of digital inclusive finance for poverty alleviation.The results show that digital inclusive financial development promotes poverty alleviation through direct and indirect effects.On the one hand,digital inclusive finance and economic growth both have a direct positive impact on poverty alleviation.On the other hand,digital inclusive finance achieves poverty alleviation through income distribution effects and economic growth effects.That is to say,the development of digital inclusive finance is significantly negatively related to economic growth and income distribution.Both of the two are conducive to narrowing the income gap.And the development of digital inclusive finance can significantly promote economic growth.This article believes that effective identification of poverty targets for digital inclusive finance and full use of the coordinated effects of financial and fiscal means to eliminate poverty are the prerequisites for maximizing poverty mitigation benefits.In order to guide the healthy development of digital inclusive finance properly and exert the effects of poverty mitigation,we should lift the level of digital inclusive financial services and make full use of its direct role.Also,we need to promote the healthy cycle between economic growth and digital inclusive finance,in order to make economic growth and income distribution take an indirect part in poverty alleviation.Finally,speeding up the improvement of the digital inclusive financial supervision system,improving the security of digital technologies and protecting the rights and interests of consumers effectively are the guarantee for the role of digital inclusive finance to reduce poverty.