The Impact of Digital Financial Inclusion Development on Rural Residents' Income in Zhejiang Province

Abstract

This paper empirically analyzes the impact of digital inclusive finance on rural residents' income in Zhejiang Province with 2010-2020 as the target interval and based on the data of each prefecture-level city in Zhejiang Province. Heterogeneity test and robustness test were carried out after the completion of empirical evidence, and finally both passed the test. From the results, it can be seen that digital inclusive finance in Zhejiang Province can significantly promote the growth of rural residents' income. The test results show that the strength of the impact of digital inclusive finance on rural residents' income varies in different prefecture-level cities. The effect of financial inclusion index on the growth of rural residents' income is more obvious in northeast Zhejiang than in southwest Zhejiang. It is still significant even if the core explanatory variables are replaced during the robustness test. It indicates that when the government improves the level of digital financial inclusion, it should not only improve the overall level of digital financial inclusion, but also focus on increasing the digital financial inclusion investment in backward areas can also reduce the income differences and narrow the regional development gap, which will help to achieve the goal of common prosperity.