Author(s)

Yunyu Qiu, Qing Guo, Yichen He

Corresponding Author

Yunyu Qiu

ABSTRACT

Can the digital economy and inclusive finance based on emerging digital technologies become a new driving force for advancing the development of shared prosperity? This paper combines data from the China Digital Inclusive Finance Index and the China Household Tracking Survey (CFPS) to explore the impact of digital inclusive finance on shared prosperity. The study shows that the development of digital inclusive finance significantly improves household income and residents' happiness, and empowers common prosperity at both material and spiritual affluence levels; the income enhancement effect is more obvious for the low-income class, and the marginal contribution of digital inclusive finance to their common prosperity is greater. Further analysis shows that for households with different capital, digital finance contributes to common affluence at the spiritual level, but the gap in material wealth is gradually increasing due to the Matthew effect brought about by the digital divide. This study provides a policy rationale for digital inclusive finance to contribute to the construction of common wealth.

KEYWORDS

Digital economy, Inclusive finance, Shared prosperity, Spiritual affluence, Material affluence