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

In the report of the 19^th CPC National Congress,it is proposed that a moderately prosperous society should be built in the year by 2020.At the same time,it was also pointed out that we should resolutely tackle the key battles of preventing and resolving major risks,accurately eliminating poverty and preventing pollution.Overall poverty alleviation is a hard index to measure the moderately prosperous society.Accurate poverty alleviation is a key link and one of the most arduous tasks in the process of building a moderately prosperous society in an all-round way.Finance is the core of modern economy and the blood of real economy.It is an effective way to win the battle against poverty by finance to help the poor to get rid of poverty.Inclusive Finance can expand financial boundaries to the greatest extent,improve the coverage of financial services,effectively alleviate the financial gap and financial constraints in rural areas.thus,it can help to narrow the income gap and offer strong support for the realization of precise poverty alleviation.This paper regards the narrowing degree of urban-rural income gap as the measurement index to measure the effect of poverty reduction.Through reading and combing the relevant literature,it analyses the impact mechanism of Inclusive Finance on urban-rural income gap.Combining with the current development status of Inclusive Finance and Digital Inclusive Finance in China,it advances the impact of Inclusive Finance and Digital Inclusive Finance on urban-rural income gap.Through comparative analysis and research,we can better compare the poverty reduction effects of the two,and provide theoretical reference and empirical support for relevant policy makers.Specifically,by calculating the traditional Inclusive Financial index and the Theil index to measure the urban-rural income gap,using the Digital Inclusive Financial index issued by the Internet Research Center of Peking University,this paper uses panel linear regression and threshold regression to test the poverty reduction effect of the two indices from the provincial and regional levels,and further tests the development of Digital Inclusive Finance.Empirical analysis of poverty reduction effect is carried out from three dimensions.The results show that compared with Inclusive Finance,Digital Inclusive Finance can significantly narrow the urban-rural income gap,in addition,the poverty reduction effects of the two are different in eastern,central and western regions.Both Inclusive Finance and Digital Inclusive Finance have double thresholds for urbanization rate,but their thresholds are different,and their poverty reduction effects are also different.Accordingly,the corresponding policy suggestions are put forward,which should fully promote the integration and development of Inclusive Finance and Digital Inclusive Finance,emphasizing on the development of Digital Inclusive Finance,improving the level of Digital Inclusive Financial services,and raising the level of urbanization so as to give full play to the role of Inclusive Finance in narrowing the urban-rural income gap,accelerate the progress of winning the battle against poverty,and lay a good foundation for building a well-off society in an all-round way.