Research On The Differences And Influencing Factors In The Development Of Digital Inclusive Finance Between Urban And Rural Areas In China

With the development of the times,the emergence and popularization of digital technology have brought new opportunities to the development of traditional inclusive finance,which is currently in a bottleneck period.Inclusive finance utilizes digital technology to create a low-cost,efficient,and widely covered new financial system.The emergence and development of digital inclusive finance can help low-income groups and small and micro enterprises effectively solve the high threshold problem of traditional financial services,and also provide new ideas for solving the difficulties faced by rural financial development.The report of the 20 th National Congress of the Communist Party of China pointed out that comprehensively promoting rural revitalization and establishing modernization of agriculture and rural areas provide significant opportunities for the deepening development of rural digital inclusive finance.Based on China’s national conditions,how to promote digital inclusive finance in a timely and effective manner under the dual economic structure of urban and rural areas is an urgent problem to be solved.Understanding the development of digital inclusive finance in urban and rural areas of China,exploring the relevant factors and mechanisms that affect the development of digital inclusive finance,is crucial for ensuring the healthy development of digital inclusive finance.This article elaborates on the current development status of digital inclusive finance in the context of the booming digital economy in China,and based on relevant theories such as inclusive finance,inclusive growth,financial development,financial exclusion,and imbalanced financial development,studies the differences in the development of digital inclusive finance between urban and rural areas in China,identifies the influencing factors,and explores their mechanisms of action,And attempt to analyze the threshold effect of factors affecting the development of digital inclusive finance from the perspective of financial development.Selecting more than1800 counties in China from 2014 to 2020 as research samples,and based on the classification standard system of the Organization for Economic Cooperation and Development(OECD),the research object is defined as "urban" and "rural" according to a population density of 500 people/square kilometer.Quantitatively refining the indicator division,in the context of promoting county level integration and high-quality economic development,using county-level units as samples has strong policy targeting and is also convenient for international integration.This paper uses the fixed effect model to investigate the difference of influencing factors of urban and rural digital inclusive finance development,uses the mesomeric effect model to explore the mechanism of influencing factors,and uses the panel threshold model to investigate the extent of the role of financial development on the influencing factors of digital inclusive finance.The empirical results indicate that:(1)both industrial economy and government intervention have a positive impact on the development of digital inclusive finance,with varying degrees of performance in urban and rural areas.Secondary education is a factor that affects the development of digital inclusive finance in rural areas.(2)Industrial upgrading and indirect finance play a mediating role in the development of digital inclusive finance,but indirect finance only has a significant impact in urban areas.(3)There is a threshold effect between the influencing factors of financial development and digital inclusive financial development.Finally,based on the research results,valuable policy recommendations were proposed from four aspects: establishing and improving infrastructure,improving the financial system,clarifying government responsibilities,and coordinating urban-rural integration development.Against the backdrop of comprehensively promoting rural revitalization,the inefficient and imbalanced allocation of financial resources in China’s urban-rural dual economic structure has not been effectively addressed,and the breadth and depth of rural digital inclusive finance need to be improved.Digital inclusive finance possesses the inclusiveness of inclusive finance and the precision of digital technology.The integration of digital technology and inclusive finance helps to overcome financial exclusion in the county environment,alleviate the widespread demand for financial resources among low-income groups and regions within the county,and promote high-quality development of the county economy comprehensively.Exploring the differences and influencing factors in the development of digital inclusive finance in China from the perspective of county entities,these research results are expected to promote the accessibility of financial services in urban and rural areas,provide some reference for promoting urban-rural integration and regional coordinated development,assist in the construction of new urbanization,promote economic growth,and modernization of agriculture and rural areas.The steady and healthy development of digital inclusive finance helps to cooperate with national macroeconomic policies,fill the "shortcomings" of county-level inclusive finance system construction,provide strong financial support for rural revitalization,effectively solve the historical and practical difficulties of difficult and expensive financing for small and micro enterprises,and fully improve the effectiveness of inclusive finance services for rural revitalization.It is of great significance for achieving China’s rural revitalization goals.