Research On The Influence Of Digital Inclusive Finance On Family Financial Exclusion In Western China

In the era of rapid development of digital technology,the wide coverage,low cost,and sustainability of digital finance are among many high-quality characteristics that help promote the inclusive and accommodative development of household finance,and have great potential in terms of increasing household financial participation and reducing household financial exclusion.However,residents in remote western regions of China still face financial exclusion due to their relatively underdeveloped economic level and inadequate infrastructure,where some residents’ effective financial needs are not being met and some households are still unable to obtain the necessary financial products and services at reasonable prices and means.Therefore,the government has been committed to improving the accessibility,coverage,and satisfaction of financial services,The objective of inclusive finance is to mitigate financial exclusion and enable a comprehensive distribution of the benefits of financial reform and development amongst the populace at large;The prime objective of digital inclusive finance is to serve as a panacea for those who have been ostracized by conventional financial establishments-namely,individuals mired in poverty and low-income demographics-and thus,enrich their socio-economic development.The advent of digital inclusive finance in recent years has successfully tackled the quandaries of imbalanced progress,restricted outreach,and steep barriers that were inherent in the realm of traditional finance.It has revolutionized the way financial services are offered by extending accessibility to the masses.Its unique advantage in digital technology has provided new development directions for easing financial exclusion.Based on this,this study proposes a systematic theoretical and empirical research approach to examine how digital inclusive finance in western China affects family financial exclusion.To commence,the notions of digital inclusive finance and financial marginalization are elucidated and expounded upon,grounding their theoretical underpinnings;following which,corresponding research conjectures are postulated on the bedrock of pertinent theories.Second,official financial statistical data and the China Household Finance Survey(CHFS)database for 2015,2017,and 2019 are used to construct indicators,and the entropy methodology has been employed to gauge the degree of financial marginalization across the western region of China.Surmising data from the highly-regarded "Peking University Digital Inclusive Finance Index" and the well-respected "China Household Finance Survey" database,a fixed-effect regression model has been formulated.The data has been analyzed utilizing the sophisticated stata15 software package.The study empirically examines the impact of the total index and three dimensions of digital inclusive finance on household financial exclusion in western China.In addition,it studies the moderating effect of digital literacy on the impact of digital inclusive finance on financial exclusion and discusses the heterogeneity between households.After thorough analysis of the empirical research findings,judicious policy suggestions are tendered in due consideration of prevailing circumstances.The research conclusions are as follows:(1)Digital inclusive finance significantly alleviates household financial exclusion in western China.Among the tripartite dimensions of digital inclusivity in finance,both the expansiveness and profundity of coverage distinctly facilitate the alleviation of financial exclusion.with depth of use being the most effective,but digitalization has increased household financial exclusion.(2)The essence of digital literacy manifests a considerable influence in mitigating financial exclusion through digital inclusive finance.(3)The alleviation of rural household financial exclusion by digital inclusive finance is greater than that of urban households;the alleviation of household financial exclusion for households with heads with lower education levels is greater than for those with higher education levels.Utilizing empirical research,this manuscript posits recommendations for policies emanating from four distinct points of view.Reasonable allocation of digital inclusive finance resources,Promote fair competition and effectively prevent financial risks,improving the use of digital financial services in western regions,and enhancing digital literacy among residents.