A study on the impact mechanism of common prosperity development based on the perspective of digital inclusive finance

Abstract

It is an important mission of the Party Central Committee to gradually achieve common prosperity, and it is of great contemporary significance to investigate the mechanism of the impact of digital inclusive finance on common prosperity in depth. Based on the panel data of 31 provinces from 2011-2021, this paper uses the Entropy-Topsis method to measure and quantify the development level of common prosperity and conducts convergence and clustering analysis, and then uses the two-factor fixed effects model to explore the mechanism and heterogeneity of different factors on common prosperity. The empirical results show that: firstly, the development level of common affluence among regions is increasing and the gap is narrowing year by year,and the development of common affluence in economically developed regions is significantly better than that in economically backward regions;secondly,digital inclusive finance significantly promotes the development of common affluence; besides, innovation ability, openness to the outside world and urbanization level all play a significant positive role in the development of common affluence.Thirdly,from the perspective of heterogeneity, first, the breadth of coverage and depth of use of digital inclusion can effectively promote the development of common prosperity, and second, the promotion effect of digital inclusion is more obvious in East China and South China. Finally, combined with the empirical results, this paper puts forward relevant suggestions for realizing the high-quality development of common affluence.