Research On The Impact Of Digital Financial Inclusion On Relative Poverty Of Households

In 2021,China made major historic achievements in poverty alleviation,and the problem of absolute poverty was completely eliminated.Under the new background of comprehensive victory in poverty alleviation and steady advancement of rural revitalization strategy,consolidating the achievements of poverty alleviation and establishing a long-term mechanism to solve relative poverty have become the new focus of poverty alleviation work.Different from the focus on ensuring basic livelihood to eliminate absolute poverty,relative poverty needs to solve the gap between the difficult groups and the overall quality of life of society,and the task is more arduous and complex.In recent years,China has vigorously promoted financial poverty alleviation,achieved obvious results,and been widely recognized by all sectors of society.However,due to the inherent profit-seeking nature of financial institutions,financial services in rural and remote areas are still seriously lacking and it is difficult to meet the needs of the people.At the same time,China’s digital technology and inclusive finance tend to be deeply integrated,and the development level of digital inclusive finance continues to improve,which has unique advantages in promoting poverty alleviation,alleviating financial exclusion,and achieving inclusive growth.Existing research shows that digital financial inclusion can significantly reduce household poverty.Based on this,from the perspective of urban-rural coordination,this paper changes the research object from traditional absolute poverty to relative poverty and studies the impact of digital financial inclusion on the relative poverty of households.This paper first sorts out the concepts and measurement of relative poverty and digital inclusive finance and the relevant literature on the impact of digital inclusive finance on relative poverty and then starts from the definition of basic concepts,based on the theory of financial exclusion,financial inclusive growth theory,and long-tail theory,the theoretical and logical basis of the impact of digital inclusive finance on the relative poverty of households and its heterogeneity analysis and impact mechanism are sorted out,so as to clarify the main directions of empirical research in this paper.On the basis of theoretical research,this paper combines Wind and other related databases to use the2013-2019 China Household Finance Survey Data and Peking University Digital Financial Inclusion Index for statistical and empirical research.Firstly,this paper statistically analyzes the current situation of digital inclusive finance and the relative poverty of households in China and points out the relationship between the two,secondly,with the help of the fixed-effect model and moderation-effect model,empirical regression analysis is carried out for the basic research conclusions,and robustness tests are carried out by endogenous analysis,replacement of the metric of the explanatory variables,replacement of models and exclusion of samples of municipalities directly under the central government,in addition,heterogeneity analysis is carried out based on regional distribution,urban and rural areas,and age groups,and finally,the influence mechanism of residents’ entrepreneurship is verified.This paper concludes that:(1)Digital financial inclusion can alleviate relative poverty,and there are differences in the poverty reduction effect of coverage and depth of use;(2)The impact of digital financial inclusion on relative poverty is heterogeneous in different regions,between urban and rural areas,and in different age groups;(3)Digital inclusive financial integration can indirectly alleviate the relative poverty of household households by promoting the mechanism of household entrepreneurship.Finally,the following policy suggestions are proposed:(1)Construct a long-term identification mechanism for relative poverty;(2)Strengthen the construction of digital infrastructure in underdeveloped regions;(3)Encourage innovation in digital inclusive financial products;(4)Effectively improve residents’ digital financial literacy.