Research On The Impact Of Digital Finance On Rural Households’ Multidimensional Relative Poverty

China has achieved comprehensive victory in poverty alleviation,and alleviating relative poverty will become a key focus of poverty alleviation work in the next stage.With the continuous improvement of financial poverty alleviation policies and mechanisms,financial models are also constantly innovating.Nowadays,digital finance has effectively reduced the transaction costs of traditional financial institutions,alleviated financial exclusion and information asymmetry issues,improved the availability of financial services for farmers,and provided important support for farmers to expand income channels.Therefore,studying the impact of digital finance on multidimensional relative poverty of farmers is of great significance.On the one hand,it can expand the research scope of digital finance and multidimensional relative poverty of farmers,provide ideas and references for effectively identifying and measuring relative poverty problems in rural areas,and thus better carry out the task of alleviating relative poverty;On the other hand,it is possible to fully understand the mechanism by which digital finance affects relative poverty,which helps to enhance the endogenous development momentum of poverty alleviation farmers,consolidate the achievements of poverty alleviation,and lay the foundation for achieving comprehensive rural revitalization.In order to better grasp the current development situation of digital finance and multidimensional relative poverty of rural households in China,clarify the main difficulties of digital finance and alleviating multidimensional relative poverty of rural households,explore the mechanism of digital finance in alleviating multidimensional relative poverty of rural households,with a view to identifying and summarizing feasible strategies for alleviating multidimensional relative poverty of rural households in China and the future development direction of digital finance.This article reviews relevant research on digital finance and multidimensional relative poverty among farmers.Based on the conceptual definition,theoretical analysis,and current development status,it analyzes the impact mechanism of digital finance on multidimensional relative poverty among farmers.Using the 2019 China Household Finance Survey(CHFS)data,it examines the impact of digital finance and its various businesses on multidimensional relative poverty among farmers,Analyze the impact of digital finance on the types of multidimensional relative poverty and the dimensions of rural households’ relative poverty,use a mediator effect model to test the indirect impact of digital finance on rural households’ multidimensional relative poverty,and explore the heterogeneity of the direct impact on regional and household risk preferences.The findings of the study are:Firstly,digital finance can effectively alleviate multi-dimensional relative poverty among farmers,and digital basic services have a better alleviation effect on it;From the perspective of multidimensional relative poverty types,digital finance can better reduce the relative poverty level of vulnerable poverty groups;From the perspective of relative poverty among farmers,digital finance can help alleviate poverty in development capacity and economic capacity.In addition,after considering endogenous and robustness issues,the conclusion remains valid.Secondly,digital finance can indirectly affect farmers’ multidimensional relative poverty through promoting farmers’ entrepreneurship and improving their financial literacy,with a partial intermediary effect.However,there are differences in the impact of digital finance on multidimensional relative poverty among farmers in terms of regions and risk preferences.The mitigation effect of digital finance on eastern regions is higher than that of central and western regions,and the impact on farmers with low risk appetite is more significant.In view of this,this article proposes countermeasures and suggestions such as strengthening the top-level design of digital finance,strengthening the construction of digital infrastructure,accelerating the innovation of digital financial products,reduce the threshold of farmers ’ entrepreneurial financing,improving farmers’ digital financial literacy,and improving the quality of education in rural areas.