Research On The Impact Of Digital Inclusive Finance On Rural Revitalization And Development

"Agriculture is the basis of the state ".The issue related to agriculture,rural areas and farmers has always been given great attention by both the Communist Party of China(CPC)and the State Council.Until 2023,Central Document No.1 has emphasised the development of the "three rural issue" for 20 consecutive years.During the 19 th Party Congress,a strategy to revitalize rural areas was formally introduced,providing more political support for the development of the "three rural issue".Not only does the implementation of the rural revitalization strategy require political guidance and support,but it also necessitates stable financial backing.Traditional financial institutions are limited by operating costs and have high requirements on regional economic development and service standards for the population.It is difficult to provide appropriate financial services for residents in low-income rural areas.As a result,new financial needs have emerged.At the same time,digital inclusive finance comes into being under the background of global information development and digital transformation.On the one hand,on the basis of two-way empowerment of big data and informatization,digital inclusive finance greatly reduces operating costs and improves the accessibility of financial institutions.On the other hand,inclusive digital finance is also "inclusive" and has the potential to effectively tackle the issue of financial exclusion of the long-standing segment of traditional finance.Thus,digital inclusive finance,as a key tool for solving the difficult and costly financing problems of rural areas,can help modernize agricultural production,attract and train human resources in rural areas,beautify the rural ecology and living environment,build rural culture and civilization,improve the effectiveness of rural governance,thus effectively enabling rural revitalization.This paper will concentrate on the following key areas based on the aforementioned analysis.Firstly,the relevant literature and theories are reviewed from three aspects: rural revitalization,the impact of financial development and digital inclusive finance on rural revitalization.Secondly,this paper will utilize Peking University’s index for digital inclusive finance and the rural revitalization development index calculated using the entropy method to evaluate the present status of these two factors and the effect of digital inclusive finance on rural revitalization.Thirdly,in connection with the solid promotion of the five aspects of "industry,talent,culture,ecology and organization",the impact of digital inclusive finance on these five aspects is analyzed theoretically.Finally,this paper will evaluate the effect of digital inclusive finance on rural revitalization through empirical analysis utilizing both static panel and threshold models.The key discoveries of this research are summarized as follows: firstly,the advancement of digital inclusive finance significantly contributes to rural revitalization implementation,but this contribution is limited by the low level of trust in digital finance among farmers,the imperfect digital infrastructure in rural areas and the insufficient effective supply of digital inclusive financial products;Secondly,the development of all dimensions of rural revitalization is positively affected by digital inclusive finance,among which the three dimensions of industry,talent and ecology are more significantly affected;Thirdly,the level of development of inclusive digital finance as a threshold variable has a single threshold effect on rural revitalization development.Regarding the diverse aspects of rural revitalization,digital inclusive finance has a dual threshold impact on industrial revitalization and a singular threshold effect on talent and organizational revitalization;Fourthly,all dimensions of digital inclusive finance development have an incentive effect on rural revitalization development,with the most important incentive effect being the depth of use index;Finally,rural revitalization development in the eastern,central and western regions is positively affected by digital inclusive finance development.Considering the significant differences in development levels of economic and digital inclusive finance in each region,this positive influence has the greatest growth potential in the West.