How Digital Finance Improves the Urban-Rural Financial Dual Structure in China:From the Perspective of Formal Credit Rationing for Households
Based on micro-level data and the Peking University Digital Inclusive Finance Index,we empirically analyze the impact of digital finance on China's urban-rural dual structure of traditional finance from the perspective of formal credit rationing.The findings are as follows:First,digital finance development significantly alleviates formal credit rationing for urban and rural households.Compared with urban households,digital finance development has a greater impact on both supply-side credit rationing and demand-side credit rationing for rural households,thus improving the urban-rural dual structure of traditional finance.Second,digital finance development can improve the matching of loan maturity for rural households to a greater extent,thereby improving the efficiency of financial service in rural markets.Third,digital finance development can improve the dual structure of formal finance and informal finance by promoting the formalization of borrowing channels for urban and rural households.Fourth,at the current stage,digital finance development plays a limited role in reducing the financing cost of production and operation loans and facilitating the formalization of production and operation loans'borrowing channels for rural households.This paper provides empirical evidence and policy inspiration for improving China's urban-rural dual structure of traditional finance.
Digital FinanceUrban and Rural HouseholdsDual Financial StructureFormal Credit Rationing
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