Research on the Impact of Digital Inclusive Financial Development on the Income Gap between Urban and Rural Residents in Henan Province

Abstract

This paper begins with an introduction of what digital inclusive finance is; it immediately describes and analyzes the development of digital inclusive finance in Henan, and analyzes the status of disposable incomes of urban and rural residents in Henan from 2011-2021; secondly, based on the digital inclusive finance index released by Peking University from 2011-2021, and based on the panel data of the corresponding years and prefectural cities of Henan Province, it applies the Stata software, through econometric regression and other methods, to empirically analyze the relationship between the development of digital inclusive finance and the income differences between urban and rural residents, to explore the intrinsic relationship between the development of digital inclusive finance and the income differences between urban and rural residents, and to meticulously examine the impact of the coverage, depth of use, and degree of digitalization of digital inclusive finance on the income differences between urban and rural residents. Through the empirical analysis, it is found that the index of digital inclusive finance development has a significant effect on the reduction of the income gap between urban and rural residents, in which the index of the degree of digital inclusive finance digitization has a greater impact on the reduction of the gap between urban and rural residents' incomes.