Research on the influence of digital inclusive finance on the urban - rural income gap in hunan province

This research investigates the mechanisms and impacts of digital inclusive finance on the urban - rural income gap in Hunan Province. Based on a three - dimensional index system encompassing the breadth of coverage, the depth of usage, and the degree of digitization, and utilizing time - series data from 1990 to 2023, the analysis applies a VAR model, cointegration tests, and Granger's causality tests. The empirical findings indicate that digital inclusive finance significantly narrows the urban - rural income gap, with an effect magnitude (coefficient of - 0.321) stronger than that of traditional inclusive finance, and that a long - term equilibrium relationship exists between the two. Among the dimensions, the breadth of coverage plays the most decisive role (coefficient of - 0.215), whereas the degree of digitization has a relatively weaker influence. Regional heterogeneity is also evident: the effect is most pronounced in the Changsha - Zhuzhou - Xiangtan urban agglomeration (coefficient of - 0.412) and least significant in Western Hunan (coefficient of - 0.195). Moreover, both digital infrastructure and educational attainment positively moderate the poverty reduction effect. In light of these results, the paper suggests accelerating the deployment of rural 5G, developing financial products tailored to regional circumstances, and enhancing farmers' digital literacy to promote more balanced urban - rural development.