Research On The Influence Of Inclusive Finance On Rural Residents’ Income

China achieved a comprehensive victory in the battle against poverty in 2020,marking the end of absolute poverty.However,there is still a large gap between urban and rural residents’ income under the dual structure of urban and rural areas.With the success of the 20th Party Congress,"achieving common prosperity for all the people" has been clearly listed as one of the essential requirements of Chinese-style modernization.To achieve common prosperity,we must increase rural incomes and narrow the income gap between urban and rural areas.In this stage,financial assistance to farmers to increase income needs to pay more attention to the power of "Inclusive".Inclusive finance emphasizes broadening the boundaries of financial services to the greatest extent at an affordable cost and providing suitable financial services for all social strata and groups.Therefore,the sinking of inclusive financial services in rural areas can increase the financial availability of rural residents,effectively alleviate the capital gap and credit constraints faced by rural households in the production and operation process,and further promote the increase of rural residents’ income.At present,Chinese inclusive finance can be divided into traditional inclusive finance and digital inclusive finance.The realization of traditional inclusive finance is based on financial physical facilities and mainly provides offline financial services.The realization of digital financial inclusion is based on financial innovation driven by digital technology and mainly provides online financial services.Traditional inclusive finance has played an important role in the fight against poverty,but it still faces problems such as high cost and incomplete credit system.Digital inclusive finance provides more convenient and efficient services,but it may lead to digital exclusion and digital divide in rural areas.So,can both traditional and digital inclusive finance improve rural residents’ incomes? Are there differences in the income increasing effects and ways between two forms of inclusive finance? To carry out a systematic study on the above issues will help rural residents to improve their income better and is of great significance to the realization of common prosperity for all the people.Specifically,the first step of this paper is to review the literature from three aspects: the origin and definition,the index measurement and the impact on rural residents’ income of traditional inclusive finance and digital inclusive finance.On this basis,the literature review is conducted.The second step is to elaborate the theoretical basis of the research,then compare and analyze the direct and indirect mechanisms of traditional inclusive finance and digital inclusive finance to improve rural residents’ income,and then propose corresponding research hypotheses.The third step is to use the 2019 China Household Finance Survey(CHFS)data to complete the index construction of traditional and digital inclusive finance and the index measurement of other required variables.The fourth step is to use OLS model to conduct basic research on the relationship between the two and rural residents’ income,and introduce quantile model,heterogeneity regression and mediating effect model for further research.The fifth step is to put forward policy recommendations corresponding to the research conclusions based on theoretical and empirical analysis.The research results of this paper show that:(1)Both traditional and digital inclusive finance can increase rural residents’ income.Generally speaking,the income increasing effect of digital inclusive finance is greater than that of traditional inclusive finance.(2)From the perspective of different income level,digital inclusion finance has a greater effect on rural residents’ income than traditional inclusion finance at each income subpoint,and the advantage increases with the decrease of income subpoint.(3)By region,traditional inclusive finance and digital inclusive finance have significantly increased the income of rural residents in both eastern and non-eastern regions,and the income increase effect of digital inclusive finance is greater than that of traditional inclusive finance.(4)From the perspective of different education level,traditional inclusive finance has a better effect on the income increase of rural residents with higher education level,while digital inclusive finance has a better effect on the income increase of rural residents with lower education level.(5)Both traditional inclusive finance and digital inclusive finance can exert indirect income increase effect by easing credit constraints on rural households,and digital inclusive finance can also exert indirect income increase effect by promoting entrepreneurship of rural households.Based on the above research results,this paper puts forward relevant policy suggestions in order to improve the income increase effect of inclusive finance on rural residents.Firstly,the effective coverage of digital inclusive finance services in rural areas should be promoted to further unleash the income growth advantages of digital inclusive finance.Secondly,it should gradually realize the organic integration of traditional and digital services,and rationally promote the digital transition of traditional inclusive finance.Then,based on the different income increase advantages of the two,by changing the different emphasis on traditional and digital models,differentiated inclusive finance income increase schemes are given to rural groups with different characteristics.Finally,pay attention to the indirect income increase mechanism of inclusive finance for rural residents,and refine the comparison between traditional and digital service revenue path,so as to better play their indirect role in increasing rural residents’ income.