AUTHOR=Xiong Mingzhao , Fan Jingjing , Li Wenqi , Sheng Xian Brian Teo TITLE=Can China’s digital inclusive finance help rural revitalization? A perspective based on rural economic development and income disparity JOURNAL=Frontiers in Environmental Science VOLUME=10 YEAR=2022 URL=https://www.frontiersin.org/journals/environmental-science/articles/10.3389/fenvs.2022.985620 DOI=10.3389/fenvs.2022.985620 ISSN=2296-665X ABSTRACT=

The development of digital inclusive finance in China can help alleviate the problems of the “three rural areas” and contribute to rural revitalization. The impact of digital inclusive finance on rural revitalization is examined by multiple linear regression, mediated effect model, and threshold effect model in a sample of 30 provinces in China from 2011 to 2020. It is found that (1) the digital inclusive finance index and its sub-indicators - the breadth of digital financial coverage and depth of digital financial use - can promote rural revitalization in China, but the digitalization degree of its sub-indicators does not have a significant linear effect on rural revitalization, but a “U” shaped relationship of first inhibiting and then promoting, with 2017 as the boundary. (2) The regional heterogeneity test reveals that the promotion effect of the digital financial inclusion index and its sub-indicators of digital financial coverage breadth and digital financial usage depth on rural revitalization is more significant in the eastern coastal and central inland provinces, and insignificant in the western remote areas. (3) The mediating effect test finds that digital inclusive finance in China can contribute to rural revitalization by promoting economic growth in rural areas and narrowing the income gap between urban and rural areas. (4) The threshold effect test reveals that there is a single threshold effect of digital inclusive finance and its three sub-indicators on rural revitalization in China. When the digital inclusive finance index and the three sub-dimensions are below the threshold value, they have a facilitating effect on rural revitalization, and after crossing the threshold value, their facilitating effect on rural revitalization becomes more significant. Based on the empirical analysis results, this paper puts forward suggestions for improving the development mechanism of digital inclusive finance, formulating differentiated financial support policies and strengthening financial supervision according to regional differences, and establishing a long-term mechanism for rural revitalization, to promote China’s rural revitalization.