Digital Inclusive Finance Data Mining and Model-Driven Analysis of the Impact of Urban-Rural Income Gap

Abstract

Digital inclusive finance, rural human capital, and agricultural green total factor productivity are simultaneously incorporated into the framework of urban-rural income gap analysis. Based on digital inclusive finance indices from several provincial panel data in China, a systematic generalized moment estimation method is used to the moderating effect of rural human capital and the mediating role of agricultural green total factor productivity. Annual time series data of foreign trade indicators and urban-rural income gap indicators are estimated by building a state-space model and applying Kalman filter to investigate the effects of these factors on the urban-rural income gap. The results show that the impact of urban-rural fixed asset investment ratio and foreign trade indicator on the urban-rural income gap in China tends to increase gradually, while the impact of rural financial development indicator is decreasing but still positive. The study finds that the development of digital inclusive finance significantly contributes to the reduction of the income gap between urban and rural residents; the breadth of coverage of digital inclusive finance and the degree of digitalization help to suppress the widening of the income gap between urban and rural residents; and rural health-based human capital, education and training-based human capital, and migration-based human capital not only have a convergence effect on the income gap between urban and rural residents themselves.

Modified CPT-TODIM method for evaluating the development level of digital inclusive finance under probabilistic hesitant fuzzy environment

“…In the last fifteen years, along with the rapid development and universal application of digital technology, the digital inclusive finance model has started to gain wider and wider recognition [71,72]. Digital inclusive finance is to empower traditional inclusive finance through digital technology to help solve the problems encountered in the "last mile" of financial services, so as to significantly reduce the threshold and cost of financial services, improve the efficiency of financial services, and improve the experience of financial services, thus helping traditional inclusive finance break through the bottleneck of development and solve the problems of accessibility, affordability, comprehensiveness, and commercialization [71][72][73]. In this way, it can help traditional inclusive finance break through the development bottleneck, address the endogenous requirements of accessibility, affordability, comprehensiveness and commercial sustainability, and accelerate the development process of inclusive finance.…”

Driving rural industry revitalization in the digital economy era: Exploring strategies and pathways in China

“…Furthermore, the impact of digital finance on rural economies has gained significant attention in current research. Scholars posit that the adoption of digital inclusive finance can effectively mitigate the income disparity between urban and rural dwellers [ 28 ]. In their study, Grossman and Tarazi [ 29 ] discovered that digital inclusive finance facilitates income augmentation for farmers by enabling convenient payment mechanisms.…”

A Study on the Impact of Digital Inclusive Finance on the Rural-Urban Income Gap in Shandong Province

“…However, the development speed of digital inclusive finance in Shandong Province has slowed down since 2017, and the development has stabilised from a period of rapid growth to normalised growth. From the point of view of the detailed indicators, the breadth of coverage and depth of use of digital inclusive finance has continued to increase, and has now entered a period of steady growth [6] . The degree of digital inclusive finance digitisation has fluctuated and increased, with a faster growth rate in 2013-2015, reaching a peak in 2015, a slight decline in 2016 and 2017, and rising again in 2018-2021, and maintaining a stable growth rate.…”