Research On The Impact Of Digital Inclusive Finance On Rural Revitalization In China

Our country is a big agricultural country,and the development of rural areas is directly related to the destiny of the country.Because of the long-term dual economic structure,the rural area has been backward for a long time,it is urgent to solve the problem of "three agriculture".A variety of measures have been taken in our country to promote the rural development and put forward the rural revitalization strategy.However,compared with the increasingly rapid development of towns,the speed and effect of rural areas are still weak.As an important factor of economic development,finance also has a strong supporting role for the development of rural areas.Especially when the financial development of rural areas is difficult to meet its own needs,as the extreme lack of resources,the position of finance is increasingly prominent.As a new product of The Times,digital inclusive finance has been a hot topic of discussion since it was proposed.Due to its inclusive nature,its positive significance and influence are obvious: by providing low-cost and inclusive credit support,digital inclusive finance guides capital and other factors to tilt towards rural areas,promotes rural development in multiple directions,and provides new development ideas and approaches for rural revitalization.The Central Committee of the Communist Party of China has repeatedly emphasized that we should do a good job in financial services for rural revitalization and bring into play the powerful positive effect of digital inclusive finance.This paper mainly discusses the positive impact of digital inclusive finance on rural revitalization,mainly through several parts to demonstrate.Firstly,by studying and combing literatures on digital inclusive finance,rural revitalization and their relationship,it is found that digital inclusive finance has a positive effect on rural revitalization and development with advantages such as low cost,low threshold and wide coverage.Based on the dual economic structure,Marx’s urban-rural integration theory and relevant theories of financial development,this paper analyzes the action mechanism of digital inclusive finance on rural revitalization.Digital inclusive finance helps the comprehensive development of rural revitalization in five aspects,including the coverage breadth,depth of use and digital level,by means of digital means,the essential attribute of inclusive and the natural characteristics of finance.While analyzing the development status of the two,it is noted that digital inclusive finance still has problems and difficulties in the process of promoting rural revitalization and development,such as its own risks and low financial literacy of rural residents.As for the index system of digital inclusive finance,this paper directly takes Peking University Mathematical Inclusive Finance Index as the core variable,and analyzes its and sub-indexes(coverage breadth,use depth,digitization level).As for the indicators of rural revitalization,there is no unified conclusion.Based on the Rural Revitalization Governance Plan(2018-2022)and the experience of other scholars,the evaluation indicators of rural revitalization are sorted out,and the original data are processed by entropy weight method to obtain the final indicators of rural revitalization,which is ready for further empirical analysis.The fixed-effect model is adopted in the construction of the model,and endogeneity test,robustness test,and heterogeneity analysis are conducted,and the following conclusions are drawn:(1)There are regional differences in the development of digital financial inclusion and rural revitalization.The eastern region is better than the central and western regions.(2)Digital financial inclusion can promote the development of rural revitalization,but there are regional differences.The western effect is most pronounced.(3)Each index of digital financial inclusion has different impacts on rural revitalization,and the coverage breadth has the largest effect;The influence of digital financial inclusion on the sub-indicators of rural revitalization is also different,with the strongest influence on governance effectiveness.Finally,based on the research of this paper,the corresponding suggestions are proposed:(1)increase the innovation of rural digital inclusive finance providers;(2)improve the financial literacy of rural residents;(3)accelerate the construction of digital infrastructure in rural areas;(4)improve the rural credit system;(5)reduce the risks of rural digital inclusive finance;and(6)strengthen the top-level design of rural digital inclusive finance.