Research Article
The Effect of Inclusion in Digital Finance on Income Gaps between Urban and Rural Regions
@INPROCEEDINGS{10.4108/eai.2-12-2022.2328718, author={Shuangyang Hu}, title={The Effect of Inclusion in Digital Finance on Income Gaps between Urban and Rural Regions}, proceedings={Proceedings of the 3rd International Conference on Big Data Economy and Information Management, BDEIM 2022, December 2-3, 2022, Zhengzhou, China}, publisher={EAI}, proceedings_a={BDEIM}, year={2023}, month={6}, keywords={econometrics: digital financial inclusion; panel data analysis; fixed effect model; spatial effect model; disparities in income between urban and rural regions; economic statistics}, doi={10.4108/eai.2-12-2022.2328718} }- Shuangyang Hu
Year: 2023
The Effect of Inclusion in Digital Finance on Income Gaps between Urban and Rural Regions
BDEIM
EAI
DOI: 10.4108/eai.2-12-2022.2328718
Abstract
The fixed effect model is used in this paper's empirical investigation to construct a panel regression model utilizing the statistical data over the period from 31 provinces, cities, as well as autonomous regions in China from 2013 to 2019, which can show the influence of digital financial inclusion on the income gap between urban and rural regions. The study concludes that digital participatory funding may significantly enhance residents' disposable income and decrease urban-rural income disparities based on theoretical and STATA empir-ical analysis. It is found that the variables Urbanization rate and Agriculture related loans have high significance when using the spatial effect model. Because of the imbalance of re-gional development levels, the significance of other variables is different, and the results have passed the robustness test. The findings of the study provide new ideas for relevant authorities on how to allocate macro factors, improve income distribution pat-terns, and achieve common prosperity in the context of the digital economy.
