Research Article
Research on the Non-linear Impact of Fintech on the Urban-rural Income Distribution gap
@INPROCEEDINGS{10.4108/eai.24-5-2024.2350195, author={Yi Li and Nan He}, title={Research on the Non-linear Impact of Fintech on the Urban-rural Income Distribution gap}, proceedings={Proceedings of the 3rd International Conference on Mathematical Statistics and Economic Analysis, MSEA 2024, May 24--26, 2024, Jinan, China}, publisher={EAI}, proceedings_a={MSEA}, year={2024}, month={10}, keywords={fintech; non-linear research; python; urban-rural income gap}, doi={10.4108/eai.24-5-2024.2350195} }- Yi Li
Nan He
Year: 2024
Research on the Non-linear Impact of Fintech on the Urban-rural Income Distribution gap
MSEA
EAI
DOI: 10.4108/eai.24-5-2024.2350195
Abstract
This paper uses Python web scraping technology to construct a fintech index and panel data from China from 2005 to 2021 to study the impact of fintech on the urban-rural income distribution gap. The results of the study show that the relationship between FinTech and the urban-rural income distribution gap is in a "U" shape. At the optimal threshold, the development of FinTech has a mitigating effect on the income distribution gap, while overdevelopment has the opposite effect and exacerbates income inequality. The results remain significant after eliminating the endogeneity problem through the instrumental variables approach. There is also regional heterogeneity in the impact of fintech on the urban-rural income distribution gap. Eastern and central regions show significant impacts, while western regions do not. Improvements in digital infrastructure, innovation capacity and human capital amplify the impact of fintech on narrowing the urban-rural income gap. To further narrow the gap between urban and rural income distribution, it is necessary for each region to take into account its own development and keep fintech within a reasonable range. This will lay the foundation for the realisation of common prosperity and high-quality economic development.