Empirical Study on the Development of Digital Inclusive Finance on Narrowing the Consumption Gap between Urban and Rural Areas--Taking Shanxi Province as an Example

Based on the panel data of 11 cities and regions in Shanxi Province from 2011 to 2020, the study empirically investigates the impact of digital financial inclusion on the urban-rural consumption gap in Shanxi Province from the perspective of the overall effect and regional effect of digital financial inclusion development. The study finds that, in general, digital inclusive finance has narrowed the consumption gap between urban and rural residents through the high-quality features of low threshold and accessibility, from the perspective of regional heterogeneity, the uneven development of digital inclusive finance has led to significant differences in its effect on the consumption gap between urban and rural residents among regions, showing the characteristics of a ladder with a high level in the south and a low level in the north, and from the perspective of structural heterogeneity, the structure of digital inclusive finance development also has a significant impact on the consumption gap between urban and rural residents in Shanxi Province. From the perspective of structural heterogeneity, the impact of the development structure of digital inclusive finance on the consumption gap between urban and rural residents in Shanxi Province also varies, with the breadth of coverage bringing better bridging effects than the depth of use, while the degree of digitization creates the problem of digital divide and widens the consumption gap, finally, relevant suggestions are put forward with a view to narrowing the consumption gap between urban and rural areas and promoting the coordinated development of urban and rural areas.