Research On Convergence Effect Of Digital Inclusive Finance On Urban-Rural Income Gap In China

In recent years,China’s economy has maintained a healthy development in the process of rapid development.However,China’s Gini coefficient has always been higher than the world average and the warning line by international standards,and the imbalance between urban and rural development is still very serious.This is not conducive to sustainable economic development,nor to the unity and stability of society as a whole.Among several factors that influence income gap,the influence of finance can not be underestimated.In order to achieve a fair and reasonable distribution of financial resources,the United Nations has clearly proposed the definition of inclusive finance,which differs from traditional finance in that it focuses on equality of opportunity and mainly serves vulnerable groups rejected by traditional finance.Digital inclusive finance with the help of digital technology has further reduced the cost of financial services,expanded the scope of business,improved the accessibility of services,and significantly improved the quality of life of rural residents.At present,academic research on the relationship between traditional finance,inclusive finance,digital inclusive finance and urban-rural income gap has achieved fruitful results,which provides a rich theoretical basis for further study of digital inclusive finance and its impact on China’s economic development.The mechanism of financial factors influencing the urban-rural income gap is very complex.The level of economic development,the degree of financial market development,and the availability of financial services may all cause the change of the mechanism.Relevant scholars generally believe that there is a negative linear relationship between the level of digital inclusive finance and the urban-rural income gap,and there is little discussion on whether there is a non-linear relationship between the two.Moreover,as far as China’s economy is concerned,there are great differences in economic development and resource endowment among different regions,and the development level of financial market is unbalanced.The impact of digital inclusive finance on urban-rural income gap may exist regional heterogeneity.This paper selects the national prefecture-level panel data from 2011 to 2019,adopts the threshold model and uses Stata software to conduct an in-depth study on the non-linear relationship between digital inclusive finance and urban-rural income gap,and investigates whether there is regional heterogeneity.The empirical results show that the precondition for digital inclusive finance to converge the urban-rural income gap is that the development level of digital inclusive finance exceeds the threshold value and the convergence degree has regional heterogeneity.Before reaching the threshold value,the improvement of its development level will widen the income gap between urban and rural areas.On this basis,this paper gives policy Suggestions:based on all places have been beyond the threshold value,should further improve the degree of the application of digital technology,improve the information network infrastructure construction in rural areas,pratt&whitney financial product innovation,perfect the financial regulatory system,provide momentum for further narrowing the income gap between urban and rural areas.