Empirical Research on the Impact of Digital Inclusive Finance on Urban-rural Income Gap

Abstract

Based on the provincial panel data from 2011 to 2019, this paper uses the panel fixed effect model and the System GMM model to study the impact of digital Inclusive Finance on the urban-rural income gap. The empirical results show that the development of digital inclusive finance can effectively converge the income gap between urban and rural areas, and it is found that this convergence effect has the threshold of economic development. The research conclusion of this paper not only enriches the literature on digital Inclusive Finance and urban-rural income gap, but also has important reference significance for relevant departments in China to formulate digital inclusive financial policies and achieve the long-term goal of common prosperity.