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Impact of financial inclusion on the urban-rural income gap—Based on the spatial panel data model

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  • Sun, Shiquan
  • Tu, Yongqian

Abstract

This paper attempts to empirically test the relationship between financial inclusion and the urban-rural income gap using a spatial panel data model. We find that the development of the financial inclusion system widens the urban-rural income gap under the consideration of spatial factors. With regard to the regional analysis, we find that when the level of financial inclusion is low, the urban-rural income gap widens as the level of financial inclusion increases. And the urban-rural income gap narrows with the increase of financial inclusion when the financial inclusion reaches a certain level.

Suggested Citation

  • Sun, Shiquan & Tu, Yongqian, 2023. "Impact of financial inclusion on the urban-rural income gap—Based on the spatial panel data model," Finance Research Letters, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:finlet:v:53:y:2023:i:c:s1544612323000338
    DOI: 10.1016/j.frl.2023.103659
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    References listed on IDEAS

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    1. Lingui Qin & Syed Raheem & Muntasir Murshed & Xu Miao & Zeeshan Khan & Dervis Kirikkaleli, 2021. "Does financial inclusion limit carbon dioxide emissions? Analyzing the role of globalization and renewable electricity output," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(6), pages 1138-1154, November.
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    4. Rosmah Nizam & Zulkefly Abdul Karim & Tamat Sarmidi & Aisyah Abdul Rahman, 2020. "Financial Inclusion and Firms Growth in Manufacturing Sector: A Threshold Regression Analysis in Selected Asean Countries," Economies, MDPI, vol. 8(4), pages 1-12, October.
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    3. Wei Jiang & Yanhui Hu & Hongjie Cao, 2024. "Does Digital Financial Inclusion Increase the Household Consumption? Evidence from China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 17333-17364, December.
    4. Zhao, Congyu & Jia, Rongwen & Dong, Kangyin, 2023. "Does financial inclusion achieve the dual dividends of narrowing carbon inequality within cities and between cities? Empirical evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    5. Zheng, Yinglong & Shi, Yali & Chen, Kun & Tu, Yongqian, 2025. "Empirical analysis of income gap, financial deepening, and crime rate," Finance Research Letters, Elsevier, vol. 80(C).
    6. 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).
    7. Tan, Xianjiao & Kamaruddin, Roslina Binti & Hu, Siyang & Peng, Lishun & Que, Youxiong & Cai, Wenwei, 2025. "Rural revitalization and urban-rural income gap: A perspective from land transfer scale," Finance Research Letters, Elsevier, vol. 83(C).

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