Research On The Impact Of Digital Inclusive Finance On The Spatial Heterogeneity Of Urban-rural Income Ga

Reducing the income gap between urban and rural areas is a fair way to realize common prosperity,however,paying attention to urban development for a long time and the financial resource is greatly tilted to the city,which makes the financial resource in the rural areas lack,the economic development lags behind and the rural residents’ income generation is less.Since the introduction of digital financial inclusion,it has been widely recognized as an important way to narrow the income gap between urban and rural areas.It can provide financial support for rural development and create more income channels for rural residents.Whether digital financial inclusion is conducive to narrowing the urban-rural income gap,how to affect the urban-rural income gap,whether there are regional differences in the impact of digital financial inclusion on the urban-rural income gap,and why there are regional differences need to be further studied.Based on this,this paper studies the impact of digital financial inclusion on urban-rural income gap and the mechanism of the impact through theoretical and empirical studies.In addition,it further studies the impact of digital financial inclusion on the spatial heterogeneity of urban-rural income gap,and explores the reasons for the formation of spatial heterogeneity.This paper first analyzes the impact of digital financial inclusion on urban-rural income gap and the nonlinear characteristics of the impact on urban-rural income gap,and analyzes the direct and indirect mechanism of digital financial inclusion on urban-rural income gap.Using panel data of 30 provinces in China from 2011 to 2020,this paper finds that the development of digital financial inclusion has a significant convergence effect on the urban-rural income gap in China.Taking the level of economic development as the threshold variable,it is found that digital financial inclusion has different effects on the urban-rural income gap in different economic development periods,but digital financial inclusion can significantly reduce the urban-rural income gap in all three economic development periods.Early stage of economic development,inclusive financial minimum effect on the income gap between urban and rural areas of convergence,when the early stage of economic threshold crossing,inclusive financial to enhance the convergence effect of the income gap between urban and rural areas,economic level cross domain after the second threshold,inclusive financial impact on the income gap between urban and rural areas is still significant and effect tends to be stable.From the perspective of action mechanism,this paper divides the direct mechanism of digital inclusive finance into the mechanism of covering channel,the mechanism of using depth and the mechanism of digitization degree,and the three direct action mechanisms can significantly reduce the urban-rural income gap.This paper studies the indirect mechanism of digital financial inclusion narrowing the urban-rural income gap from the perspective of economic growth mechanism and poverty alleviation mechanism,and empirically verifies that digital financial inclusion can narrow the urban-rural income gap by promoting regional economic growth and alleviating rural poverty.In the current indirect mechanism,the effect of digital financial inclusion in promoting regional economic growth is much greater than that of alleviating rural poverty.Secondly,the GWR geographic weighted model was used to analyze the impact of digital financial inclusion on urban-rural income gap in different regions,and it was found that there was spatial heterogeneity in the impact of digital financial inclusion on urban-rural income gap from 2011 to 2020.In order to further explore the reasons for the spatial heterogeneity of the urban-rural income gap caused by digital financial inclusion,this paper selected the economic development level,urbanization rate,openness degree,agriculture-related expenditure and industrial structure of rural areas as the influencing factors.The empirical results show that the increase of urbanization rate is not conducive to the narrowing of the urban-rural income gap by digital financial inclusion,and the level of rural economic development,the degree of reform,agriculture-related expenditures and industrial structure can significantly improve the convergence effect of digital financial inclusion on the urban-rural income gap.Finally,based on theoretical analysis and empirical results,this paper puts forward the following suggestions:(1)Promote rural economic development in underdeveloped areas;(2)Rural residents will be encouraged to find jobs and start businesses locally;(3)Accelerate the modernization of rural trade;(4)Increase spending on agriculture in rural areas;(5)Promote diversified development of rural industries.