Digital Inclusive Finance, Rural E-Commerce, and Urban-Rural Income Gap

This study explores the impact of digital inclusive finance and rural e-commerce on the income disparity between urban and rural areas in China. Using county-level panel data from 2014 to 2022, a fixed-effects model is employed to assess how these two factors contribute to reducing income inequality. The findings show that digital inclusive finance plays a vital role in narrowing the urban-rural income gap, with rural e-commerce acting as an intermediary. Specifically, digital inclusive finance promotes economic growth in rural areas, boosting residents' income through accessible and inclusive financial services. Rural e-commerce, by breaking down geographical barriers and connecting rural markets with domestic markets, enables rural residents to utilize local resources for entrepreneurship and increases their income levels. Therefore, the research emphasizes the importance of developing a standardized wealth growth system, optimizing the income distribution structure, and ensuring fair distribution processes to effectively reduce the income gap and promote social harmony and balanced development.