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Development of inclusive finance, digital infrastructure, and the urban–rural education gap

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  • Gao, Lu
  • Li, Bin

Abstract

Using panel data (2010–2023) from 31 provincial-level regions in China, this research applies econometric approaches—including a fixed effects model and a mediation effect framework—to investigate the impact of inclusive financial development (IFD) and digital infrastructure (DI) on education disparities between urban and rural areas. Empirical results reveal the following: IFD can significantly reduce the urban–rural education gap (UREG); DI can effectively narrow the UREG; DI mediates the IFD–UREG relationship; IFD’s impact on UREG exhibits heterogeneity across regions with different population densities; and the impact of DI on UREG exhibits heterogeneity across regions with different levels of urban–rural income disparity.

Suggested Citation

  • Gao, Lu & Li, Bin, 2025. "Development of inclusive finance, digital infrastructure, and the urban–rural education gap," Finance Research Letters, Elsevier, vol. 86(PF).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pf:s1544612325020689
    DOI: 10.1016/j.frl.2025.108814
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