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Can Digital Inclusive Finance Narrow the Chinese Urban–Rural Income Gap? The Perspective of the Regional Urban–Rural Income Structure

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  • Naishu Yu

    (School of Economics, Jilin University, Changchun 130012, China)

  • Yanzhe Wang

    (School of Economics, Jilin University, Changchun 130012, China)

Abstract

This paper empirically studies the impact of digital inclusive finance on the income structure of urban and rural residents in eastern, central, and western China. The results show that, first, digital inclusive finance is beneficial to narrowing the urban–rural per capita disposable income gap that has a disequilibrium effect among regions. Second, narrowing the wage income, property income, and transfer income gaps is beneficial but has little effect on the net operating income gap between urban and rural residents. Third, narrowing the wage income, property income, and transfer income gaps reduces the total income gap, and the wage income gap has the strongest intermediary force. In the end, the paper puts forward corresponding countermeasures for the development of digital inclusive finance to narrow each of these income gaps in different regions of China.

Suggested Citation

  • Naishu Yu & Yanzhe Wang, 2021. "Can Digital Inclusive Finance Narrow the Chinese Urban–Rural Income Gap? The Perspective of the Regional Urban–Rural Income Structure," Sustainability, MDPI, vol. 13(11), pages 1-18, June.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:11:p:6427-:d:569241
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    References listed on IDEAS

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    1. Chakravarty, Satya R. & Pal, Rupayan, 2013. "Financial inclusion in India: An axiomatic approach," Journal of Policy Modeling, Elsevier, vol. 35(5), pages 813-837.
    2. Julian SCHMIED & Ana MARR, 2016. "Financial Inclusion And Poverty: The Case Of Peru," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 16(2), pages 29-40.
    3. Foltz, Jeremy & Guo, Yunnan & Yao, Yang, 2020. "Lineage networks, urban migration and income inequality: Evidence from rural China," Journal of Comparative Economics, Elsevier, vol. 48(2), pages 465-482.
    4. Satya R. Chakravarty & Rupayan Pal, 2010. "Measuring financial inclusion: An Axiomatic approach," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2010-03, Indira Gandhi Institute of Development Research, Mumbai, India.
    Full references (including those not matched with items on IDEAS)

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