Digital Finance Deepening and Relative Poverty:An Empirical Analysis Based on Household Data
With the advancement of Chinese modernization,China is committed to achieving common prosperity for all its people,breaking the polarization of the mode of Western moderniza-tion in which a few are rich and the majority are relatively poor,and establishing a sustainable mechanism to prevent returning to poverty.In this context,this paper employs household data to examine the impact of digital financial deepening on household relative poverty while integrating specific household characteristics with an analysis of the underlying mechanisms.The findings are as follows.First,digital financial deepening significantly alleviates household relative poverty and contributes to common prosperity.This effect remains robust even after addressing endogene-ity concerns through instrumental variables.Second,digital financial deepening mitigates house-hold budget constraints to influence employment and production decisions within households and enhance their capacity for risk resilience,thereby reducing relative poverty.Further analysis re-veals that the effects of digital financial deepening on urban and rural families are comparable,but more pronounced among low-educated households.Moreover,the influence of diverse digital financial products on relative poverty demonstrates considerable variation.This study provides empirical evidence underscoring the role of digital financial deepening in fostering common pros-perity while offering substantive foundations and policy recommendations for advancing safe de-velopment in digital inclusive finance amid China's pursuit of common prosperity and rural revi-talization.
digital financial deepeningrelative povertycapacity for risk resiliencebudget constraint
万方数据
