Author(s)

Wang Shan

Corresponding Author

Wang Shan

ABSTRACT

The threshold effect of low availability and low efficiency leads to the limited development of traditional inclusive finance. Digital financial inclusion provides a new solution to improve the multidimensional life quality of micro families. In order to explore whether the development of digital financial inclusion can alleviate multi-dimensional poverty, this paper uses the entropy weight method to construct multi-dimensional poverty as the explained variable and uses the digital financial inclusion index to build a cross-sectional model based on the micro-sample data of Chinese households, and uses the Probit model to estimate the model. The empirical analysis results show that digital financial inclusion can reduce the incidence of multi-dimensional poverty and improve the overall quality of life of residents. In addition, the digitization of financial inclusion has the strongest effect on poverty reduction, and the impact of digital financial inclusion is better in groups with low years of education and low math test scores. Promoting differentiated digital poverty alleviation strategies can promote the development of digital financial inclusion to a certain extent.

KEYWORDS

Digital universal financial services, Probit Model, Multi-dimensional poverty, Poverty alleviation, Heterogeneity analysis