Nonlinear Effects of Digital Inclusive Finance on Urban–Rural Income Gap in Northwest China

Abstract

With the rapid development of digital technology, digital inclusive finance has gradually become an important tool for promoting economic development and reducing income disparities. This paper takes the northwest region of China as the research object and uses panel data from 2014 to 2023 to analyze the impact of digital inclusive finance on the urban–rural income gap. Based on theoretical analysis, a panel data model is constructed, and the nonlinear relationship between digital inclusive finance and the urban–rural income gap is further examined. Through empirical analysis of relevant variables, the study explores the mechanism through which changes in the level of digital inclusive finance affect the urban–rural income gap. The research helps to deepen the understanding of the economic effects of digital inclusive finance and provides a reference for promoting regional coordinated development and optimizing digital financial policies.