金融学院知识库

Since the implementation of its reform and opening-up policy, China has indeed achieved significant progress in urbanization, but this process has also been accompanied by various new issues, with the differentiation in the urban-rural dual structure becoming more pronounced. Differences between cities and rural areas in terms of economic development levels, infrastructure construction, and access to financial services not only affect the balanced development of society but also restrict economic potential and sustainability. Therefore, advancing integrated urban and rural development, and narrowing these differences, has become an important task for China's future development. With the advancement and widespread adoption of digital technology, the concept of digital inclusive finance has come into existence, becoming a powerful tool for bridging the urban-rural gap. Digital inclusive finance, providing convenient financial services and populations underserved by traditional

financial institutions, profoundly impacting financial inclusion in rural areas and promoting income growth for urban and rural residents. Hence,

an in-depth examination of the effects and underlying processes of digital

inclusive finance on the integrated urban and rural progress is of great importance.

This text initially examines the scholarly works on digital inclusive finance and combined progression of urban and rural sectors, and the relationship between the two, clarifying the practical connotations of digital inclusive finance and integrated urban-rural development. Next, combining basic theories, this text clarifies how digital inclusive finance affects the integrated growth of urban and rural areas settings and suggests research hypotheses. Subsequently, a four-dimensional evaluation index system is constructed, encompassing economic integration, social integration, lifestyle integration, and ecological integration, to determine the comprehensive index of integrated urban-rural development. With this system, the current state of integrated

urban-rural development in various provinces and cities of China is analyzed based on calculated results. Finally, using a fixed-effects model,

the study empirically examines the direct effect of digital inclusive finance on the harmonization of urban and rural development using macro-level panel data from 30 Chinese provinces and municipalities. It examines the main sources of the positive effects of digital inclusive finance through three pathways: industrial structure upgrading, entrepreneurial and innovation activity, and urban-rural income distribution. Furthermore, it explores the regional heterogeneity and structural heterogeneity characteristics of the impact of digital inclusive finance on integrated urban-rural development.

The research indicates that digital inclusive finance plays a crucial role in facilitating the cohesive progress of both urban and rural regions.Among its effects, the most significant is on the integration of urban and rural lifestyles, while its effect on the integration of urban and rural ecology is not significant. Tests for mediating effects reveal that inclusive digital finance primarily fosters the unified advancement of urban and rural regions through three pathways: upgrading the industrial structure, encouraging entrepreneurial and innovative activities, and promoting the rationalization of urban-rural income distribution. Regional heterogeneity analysis indicates that the promoting effect of digital inclusive finance is more significant in the eastern regions, while its positive impact is smaller in the central and western areas. The impact of inclusive digital finance on structure shows that the breadth of coverage and the level of digital advancement can greatly enhance the cohesive growth of both urban and rural regions, while the depth of use does not have a significant promoting effect. Finally, based on the research conclusions, this paper suggests continuously promoting high-quality digital transformation of the financial industry, fully leveraging the channel roles of mediating variables, and balancing the development of digital finance between regions, in order to provide empirical experience and a theoretical basis for improving the allocation efficiency of digital inclusive finance and achieving integrated urban-rural development.