The impact of inclusive digital finance on the urban‒rural income gap: An empirical analysis based on regional heterogeneity

With the widespread rise of the new generation of digital technology, the operating models, products and service methods of digital finance have new meanings, especially those driving the development trend of inclusive digital finance, expanding the scope of services and improving work efficiency, thereby promoting urban and rural development. The income gap has narrowed. This paper uses panel data from 31 provinces, municipalities, and autonomous regions in China from 2012 to 2021 as a research sample to construct an empirical model of the impact of digital finance inclusion on the urban‒rural income gap. It explores the specific impact mechanisms, spatial effects, and regional research on heterogeneity. The results show that inclusive digital finance can narrow the urban‒rural income gap at the national level. However, there are differences in its effectiveness across regions and in its impact on the urban‒rural income gap in terms of regional distribution and different dimensions. Therefore, in promoting the development of inclusive digital finance, relevant departments should adapt to local conditions and implement an inclusive digital finance strategy consistent with the region's development characteristics to achieve coordinated regional development and further narrow the urban‒rural income gap.