Is Digital Financial Inclusion a New Driving Force for Rural Revitalization: Empirical Evidence Based on Provincial Panel Data

Abstract

Firstly, based on using the entropy weight method to construct the evaluation index of rural revitalization level, this paper cites the digital financial inclusion index measured by Peking University, constructs a fixed-effect model, and uses the method of gradually adding control variables to evaluate the country's 31 years in 2014-2018. The panel data of each province, city, and autonomous region are tested empirically. Secondly, through the systematic clustering method, the country is divided into high-level and low-level regions, with the development level of digital finance as the standard to discuss the heterogeneity. Finally, the economic development level is included as the threshold variable, and the nonlinear relationship between inclusive digital finance and rural revitalization is discussed. The results are shown that inclusive digital finance has a role in promoting the development of rural revitalization. It mainly drives rural revitalization and development through the breadth of coverage and the degree of digitalization; second, the development of inclusive digital finance from the perspective of regions. A place with a high level has a greater role in promoting rural revitalization. Thirdly, factors affecting the level of economic development are included. There is a nonlinear relationship between inclusive digital finance and rural revitalization, and there is a threshold effect. When the level of economic development crosses the threshold and the value is reached. The promotion effect of inclusive digital finance on rural revitalization will be enhanced.