The Impact Of Digital Finance Inclusive On Vulnerability To Relative Poverty Of Households

After decades of hard work,especially in the eight years from 2012 to 2020,under the current poverty standard,absolute poverty has been completely eliminated in China,and the goal of poverty alleviation has been completed as scheduled.As one of the signatories of the United Nations Sustainable Development Goals and the Millennium Sustainable Development Goals,China has made outstanding contributions to the cause of global poverty reduction and created another miracle in history following the rapid economic development.However,China’s efforts to combat poverty did not stop there.The Fourth Plenary Session of the 19 th Central Committee of the Communist Party of China clearly stated that after winning the battle against poverty,we should further consolidate the results of poverty eradication and establish a long-term mechanism to address relative poverty.In addition,the report of the 20 th CPC National Congress and the No.1 document of the Central Government in recent years have pointed out that the bottom line of no return to poverty on a large scale should be resolutely guarded,and the endogenous development momentum of the areas and people who have escaped poverty should be enhanced.This means that the focus of China’s poverty governance will begin to shift from addressing absolute poverty,which centers on basic human survival,to alleviating relative poverty at this stage in history.As an important policy tool to help disadvantaged groups such as low-income groups,digital inclusive finance has played an important role in the process of poverty alleviation.However,research on the relationship between digital financial inclusion and relative poverty at this stage is inconsistent.In addition,the measurement of relative poverty in the current research is a single-dimensional post-event measurement,and it is difficult to monitor the relative poverty groups in advance.In addition,in the context of China ’s promotion of common prosperity,it is of great practical significance to scientifically evaluate whether digital inclusive finance can effectively alleviate inequality and reduce the probability of families falling into relative poverty in the future.Based on the macro and micro matching balanced panel data of CHFS in 2015,2017 and2019,this paper measures the relative poverty vulnerability from a multidimensional perspective,in order to measure the probability of families falling into relative poverty in the future.Then the article uses a two-way fixed-effect model,instrumental variable method and propensity score matching double difference method(PSM-DID).This thesis examines the relationship between digital financial inclusion and the multidimensional relative vulnerability of households,and further explores the mechanism path in detail.The research results show that the development of digital finance can significantly alleviate the multidimensional relative vulnerability of families and effectively prevent families from falling into multidimensional relative poverty in the future.This result is still significant after considering a series of robustness tests.The results of heterogeneity analysis show that digital financial inclusion has a greater effect on reducing the relative vulnerability of households in western regions and rural areas,but it has less effect on reducing vulnerability in extreme poverty areas such as the "Shan Qu and Shan Zhou".In addition,for families with different characteristics,digital financial inclusion also shows different effects in reducing the probability of families falling into relative poverty in the future.In households with high financial literacy,digital tools and a high number of minors,digital financial inclusion is more effective in reducing vulnerability.Further mechanism analysis results show that digital financial inclusion can significantly alleviate household income inequality,thereby improving the per capita health,developmental consumption and well-being of family members,thus having a significant positive impact on the multidimensional relative poverty vulnerability of households.The results of this thesis provide a useful and effective perspective for the scientific and dynamic identification and governance of relative poverty and the steady advancement of common prosperity.