A Study on the Impact of Digital Inclusive Financeon the Urban-Rural Income Gap

Abstract

Chinese provincial panel data from 2011-2020 are selected to empirically demonstrate the impact of digital inclusive
finance and its sub-dimensional indices on the urban-rural income gap using a panel fixed effects model. The findings
show that digital inclusive finance narrows the urban-rural income gap in China, and the conclusions still hold after
using instrumental variables to deal with endogeneity; there is regional heterogeneity in the effects of digital inclusive
finance and its sub-dimensional indices on the urban-rural income gap.