Research On The Poverty Reduction And Income Increase Effect Of Digital Inclusive Finance Development

Vigorously developing inclusive finance is a necessary means for China to eradicate poverty,build a well-off society in an all-round way,and maintain social harmony.In 2016,the “G20 Digital Inclusive Finance Advanced Principles” adopted at the G20 Summit in Hangzhou made Digital Inclusive Finance embark on the international stage for the first time,marking that digital inclusive finance will become an important direction for the development of inclusive finance in China.It has become an important direction for global financial poverty reduction in the future.The development of digital inclusive finance has further enriched the connotation and extension of financial poverty reduction.Therefore,this paper takes digital inclusive finance as the research object,and comprehensively and deeply explores its poverty alleviation and income increase effects,which is conducive to expanding the rich and inclusive financial poverty reduction theory.In practice,the research results of this paper can provide a basis for improving the digital inclusive financial development system,and promote the implementation of the financial precision poverty alleviation strategy.First of all,this paper explains the connotation and characteristics of digital inclusive finance.On the basis of reviewing relevant domestic and international research,it summarizes financial suppression theory,financial deepening theory,financial constraint theory and financial inclusive growth,and the development of digital inclusive finance theory,poverty and poverty alleviation,financial poverty reduction theory.Secondly,this paper expounds the development status of digital inclusive finance in China from three aspects: development history,development model and risks.The development of digital inclusive finance has gone through four stages: the microfinance phase,the microfinance phase,the inclusive financial phase,and the digital inclusive finance phase.With the development of big data and the Internet,digital inclusive finance has developed rapidly and the participating entities have become more diversified,including not only traditional financial institutions,but also Internet giants and Internet financial institutions.At the same time,digital inclusive finance also faces risks such as user information leakage,financial fraud and information asymmetry.Thirdly,this paper analyzes the characteristics and advantages of digital inclusive finance as a function of poverty alleviation compared with traditional inclusive finance.On this basis,this paper discusses the direct effect mechanism of digital inclusive finance on poverty alleviation and income increase through the provision of financial services such as credit services,savings services,financing services and insurance services,and then discusses the digital inclusive finance through economic growth and income distribution as the indirect mechanism of poverty alleviation and income increase.Then,this paper deeply discusses the poverty alleviation and income increase effect of digital inclusive finance from the dynamic and static perspectives.From a dynamic perspective,this paper uses the systematic GMM estimation method to analyze the poverty alleviation and income increase effect of digital inclusive finance,and nested the mediation effect test procedure to verify the mechanism of digital inclusive finance on poverty alleviation.The results show that the digital inclusive financial index and economic growth have a significant positive effect on poverty alleviation.Income distribution will inhibit poverty from slowing down.The direct effect mechanism of digital inclusive finance on poverty alleviation and the indirect mechanism through economic growth and income distribution are significant.The negative effect of income distribution on poverty alleviation can be completely offset by the positive effects of economic growth.From a static perspective,this paper uses the fixed-effect panel threshold model to verify the nonlinear relationship between digital inclusive finance and poverty alleviation.It is found that the impact of digital inclusive finance on poverty alleviation has a distinct educational threshold.After crossing the threshold of education,which the average years of education have exceeded five years,the speed of poverty reduction in digital inclusive finance has increased.Finally,this paper summarize the analysis results and present suggestions.