Whether Digital Financial Inclusion Has Promoted Inclusive Growth Of Personal Income

At present,China’s high-quality economic development has taken a firm step,but there is a big difference between the level of economic development in urban and rural areas,and the gap between rich and poor between urban and rural areas is increasingly significant.Therefore,how to balance efficiency and equity to form inclusive income growth has become a hot topic in China.The Internet revolution has promoted the rapid development of digital inclusive finance.Existing studies have found that digital inclusive finance has promoted the growth of residents’ income,but there is still controversy about whether it has reduced the urban-rural income gap.China’s "Fourteenth Five Year Plan" proposes to build a demonstration area of common prosperity in Zhejiang to support its high-quality development.With this as the background,this paper analyzes the mechanism of digital inclusive finance on residents’ income growth and urban-rural income gap after combing the relevant literature on digital finance and inclusive growth.The analysis shows that digital inclusive finance has alleviated the financial exclusion of residents and promoted the growth of residents’ income.However,due to the lower financial literacy of rural residents than urban residents and the existence of the "digital gap",digital inclusive finance may not be able to narrow the urban-rural income gap.On this basis,this paper selects the data of Zhejiang counties from 2016 to 2020,the construction time of the Beida Digital Inclusive Finance County Index,and the county two-way fixed effect panel econometric model to empirically analyze the impact of digital inclusive finance on the income growth of urban and rural residents and the income gap between urban and rural residents.This paper finds that: first,digital inclusive finance has promoted the income growth of urban and rural residents,but it has not narrowed but widened the urban-rural income gap;Secondly,the impact of digital inclusive finance on residents’ income growth and income gap is regional heterogeneity,and the impact on high-income counties is greater than that on low-income counties;Third,the development of digital inclusive finance can affect the growth of residents’ income and urban-rural income gap by increasing digital financial investment products and promoting residents’ entrepreneurship.Therefore,the government should formulate relevant policies to promote the development of digital inclusive finance,improve the construction of financial system,deepen farmers’ understanding of digital inclusive finance,and strengthen the application of farmers’ digital inclusive finance.Possible innovations: The existing literature mainly studies the impact of digital inclusive finance on residents’ income growth and urban-rural income gap at the provincial level.This paper selects the data of counties in Zhejiang Province as the research object,which can more carefully analyze the impact of digital inclusive finance on residents’ income growth and urban-rural income gap from different levels,and further analyzes the impact mechanism according to the research conclusions.