Research On Poverty Alleviation Effect Of Digital Inclusive Finance In China

At present,our country has entered the final decisive stage of overcoming poverty.While with the progress of poverty alleviation,it is difficult for the remaining poor people and poor areas to get rid of poverty,and even some people still have signs of anti-poverty.Therefore,it is particularly important to establish a long-term mechanism for financial poverty alleviation.With the rapid development of financial science and technology,digital technology and inclusive finance tend to be deeply integrated,which provides new methods and new ideas for financial poverty alleviation.Relying on the Internet,big data,cloud computing and other scientific and technological means,digital inclusive finance can break the bottleneck of traditional inclusive finance,which has the advantages like wide coverage,low cost,high efficiency,easy to control risks and so on.Digital technology will enable financial services to reach more poor and remote areas at lower cost,and will be more accurate in the investment and use of pro-poor funds,helping the poor to achieve permanent self-employment.Therefore,this paper studies the poverty reduction effect of digital inclusive finance from the perspective of digitization.Based on the relevant literature and theory,combining the current situation of digital inclusive finance development in China,this paper analyzes the advantages of digital inclusive finance in poverty alleviation and the specific mechanism.And selecting the panel data of 31 provinces in China from 2011 to2018,citing the digital inclusive finance index issued by Peking University Digital Finance Research Center,using the system GMM model to verify the poverty reduction effects and specific mechanism of digital inclusive finance.The empirical results show that digital inclusive finance and poverty index are significantly positive correlation,which means the development of digital inclusive finance can effectively promote poverty alleviation.Also digital inclusive finance can promote poverty alleviation by promoting economic growth and optimizing income distribution.All in all,this paper believes that the development of digital inclusive finance should be promoted from the following aspects to constantly promote poverty reduction.First of all,multiple financial institutions should be included to construct a multi-layered digital inclusive financial system,which can promote the depth and the width of digital inclusive financial services.Secondly,we should speed up theinfrastructure construction in rural areas to build a good digital inclusive financial ecosystem.Thirdly,we should actively embrace financial technology and innovate the new model of digital inclusive financial services to promote targeted financial poverty alleviation.Finally,we should constantly improve the digital inclusive financial regulatory system,as well as strengthen the digital inclusive finance publicity and education of the poor to protect the rights and interests of financial consumers.