Research On The Impact Of Inclusive Finance On The Income Gap Between Urban And Rural Areas In Seven Provinces Of East China

2021 is an extraordinary year.This year,the "14th Five-Year Plan" set sail,and this year my country has achieved a comprehensive victory in poverty alleviation.As the region ranked first in China’s comprehensive strength,East China has also achieved outstanding economic development,but the urban-rural dual structure has not been fundamentally changed,and the widening income gap between urban and rural residents has not been effectively curbed.At this time,relying on its own advantages,finance adjusts the circulation of factors,improves the allocation of resources,and makes outstanding contributions to narrowing the urban-rural income gap.Therefore,based on this background,this paper conducts in-depth analysis and research on the impact of inclusive finance on the urban-rural income gap in the seven provinces of East China.Combined with the research results,it provides instructive policy suggestions for the development of inclusive finance and the overall development of urban and rural areas in East China.This paper firstly introduces the connotation of inclusive finance and urban-rural income gap,and discusses the financial development theory which is the theoretical basis of inclusive finance,and the dual economic structure theory which is the theoretical basis of urban-rural income gap.Two different paths through which inclusive finance affects the urban-rural income gap,it is found that inclusive finance can not only directly affect the urban-rural income gap,but also play an indirect role through factors such as economic development.Then based on theoretical analysis,collect relevant data,establish an indicator system from three dimensions,and measure the development status of inclusive finance in seven East China provinces.In the empirical analysis part,based on the 2010-2019 data of East China provinces,the Theil index was used as the dependent variable to build a model for analysis.Among them,the regression results of the static panel model show that the effect of inclusive finance on the reduction of the urban-rural income gap is very significant,but the impact of inclusive finance on the urban-rural income gap is different in each province,because the development level of inclusive finance in each province is different.On the basis of the analysis of the static panel regression results,a threshold panel regression was conducted to study the effect on the urban-rural income gap after the development level of inclusive finance crossed the threshold value.Based on this,the conclusion is that the development index of inclusive finance has a single threshold,and after crossing the threshold value,its effect on narrowing the urban-rural income gap is in a state of convergence.Based on the above research conclusions,some suggestions are put forward to better develop inclusive finance.First,improve the construction of relevant systems to achieve a balanced distribution of financial resources.Second,promote the comprehensive development of the availability of inclusive financial services.Finally,combined with the background of the times,take advantage of the development of the Internet to create an "Internet + Inclusive Finance" model to realize the dividends of Internet finance.