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Does Digital Inclusive Finance Narrow the Urban-Rural Income Gap through Primary Distribution and Redistribution?

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  • Hongbo Zhao

    (School of Business, Shandong University, Weihai 264209, China)

  • Xiao Zheng

    (School of Business, Shandong University, Weihai 264209, China)

  • Lin Yang

    (School of Business, Shandong University, Weihai 264209, China)

Abstract

Excessive income gap (IG) between urban and rural areas harms the quality of economic development, and imbalanced primary distribution (PD) as well as redistribution (RD) are considered to be the main factors contributing to the urban–rural IG. Does digital Inclusive Finance (DIF) affect the urban–rural IG through PD and RD? This paper empirically studies the impact of digital inclusive finance on Chinese urban–rural IG from the perspectives of PD and RD respectively, through updated and comprehensive provincial data, using the method of mediating effect. The results show that DIF narrowed China’s urban–rural IG with regional differences. Meanwhile, DIF also narrowed the urban-rural IGs in PD and RD, both with regional heterogeneity. Moreover, narrowing the urban–rural IG of PD exerted a mediating effect on the general urban–rural IG, while narrowing the urban–rural IG of RD did not. The results are helpful for DIF to better narrow urban–rural IG. Therefore, countermeasures are put forward for DIF to apply from the perspectives of PD and RD.

Suggested Citation

  • Hongbo Zhao & Xiao Zheng & Lin Yang, 2022. "Does Digital Inclusive Finance Narrow the Urban-Rural Income Gap through Primary Distribution and Redistribution?," Sustainability, MDPI, vol. 14(4), pages 1-19, February.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:4:p:2120-:d:748151
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    Cited by:

    1. Ding, Guoxuan & Kang, Nier, 2024. "The impact of digital financial inclusion on China's regional disparities in the quality of economic development: Based on the relational data paradigm," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 629-651.
    2. Quan Xiao & Yu Wang & Haojie Liao & Gang Han & Yunjie Liu, 2023. "The Impact of Digital Inclusive Finance on Agricultural Green Total Factor Productivity: A Study Based on China’s Provinces," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    3. Zhe Zhang, 2022. "Research on the Impact of Digital Finance on China's Urban-Rural Income Gap," Review of Economic Assessment, Anser Press, vol. 1(1), pages 63-75, December.
    4. Xuefeng Hou & Dianfeng Zhang & Liyuan Fu & Fu Zeng & Qing Wang, 2023. "Spatio-Temporal Evolution and Influencing Factors of Coupling Coordination Degree between Urban–Rural Integration and Digital Economy," Sustainability, MDPI, vol. 15(12), pages 1-26, June.
    5. Yuting Shi & Qiuwang Cheng & Yizhen Wu & Qiaohua Lin & Anxin Xu & Qiujin Zheng, 2023. "Promoting or Inhibiting? Digital Inclusive Finance and Cultural Consumption of Rural Residents," Sustainability, MDPI, vol. 15(3), pages 1-21, February.
    6. Lang Wang & Yuping Chen & Shijun Ding, 2022. "Examining the Impact of Digital Finance on Farmer Consumption Inequality in China," Sustainability, MDPI, vol. 14(20), pages 1-16, October.
    7. Na Lu & Jiahui Wu & Ziming Liu, 2022. "How Does Green Finance Reform Affect Enterprise Green Technology Innovation? Evidence from China," Sustainability, MDPI, vol. 14(16), pages 1-22, August.
    8. Xia Minglu, 2024. "Research on Measurement of Manufacturing Industry Chain Resilience Based on Index Contribution Model Driven by Digital Economy," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 18(1), pages 1-17.
    9. Lee, Chien-Chiang & Tang, Manting & Lee, Chi-Chuan, 2023. "Reaping digital dividends: Digital inclusive finance and high-quality development of enterprises in China," Telecommunications Policy, Elsevier, vol. 47(2).
    10. Li, Xitong & He, Peiming & Liao, Honglin & Liu, Jindan & Chen, Litai, 2024. "Does network infrastructure construction reduce urban–rural income inequality? Based on the “Broadband China” policy," Technological Forecasting and Social Change, Elsevier, vol. 205(C).
    11. Nai Chiek Aik & Qiurui Zhang, 2023. "Use of Theil for a Specific Duality Economy: Assessing the Impact of Digital Inclusive Finance on Urban-Rural Income Gap in Chongqing," FinTech, MDPI, vol. 2(4), pages 1-12, September.
    12. Li Chen & Yuanbo Zhang, 2023. "Does the Development of the Digital Economy Promote Common Prosperity?—Analysis Based on 284 Cities in China," Sustainability, MDPI, vol. 15(5), pages 1-16, March.
    13. Jianwei Gao & Yuxin Wu & Haiwei Li, 2024. "Digital Inclusive Finance, Rural Loan Availability, and Urban–Rural Income Gap: Evidence from China," Sustainability, MDPI, vol. 16(22), pages 1-25, November.
    14. Wang, Jing, 2023. "Digital inclusive finance and rural revitalization," Finance Research Letters, Elsevier, vol. 57(C).
    15. Bo Song & Jing Zhao & Panpan Zhang, 2022. "A Study on Factors Influencing the Efficiency of Rural Agriculture Financial Support in China," Sustainability, MDPI, vol. 14(22), pages 1-13, November.

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