A Study on the Impact of Inclusive Finance on Reducing the Urban-Rural Income Gap in Sichuan Province

This paper empirically analyzes the correlation between inclusive finance development and the urban-rural income gap in Sichuan Province. Based on the provincial statistical data from 2011 to 2023, this study adopts multiple linear regression and the Generalized Least Squares (GLS) method, taking the aggregate index, coverage breadth, usage depth and digitalization level of digital inclusive finance as core explanatory variables. The results show that digital inclusive finance significantly narrows the urban-rural income gap, with the aggregate index and coverage breadth playing dominant roles, while digitalization level widens the gap slightly in the short term. Heteroskedasticity and multicollinearity tests verify the good robustness of the revised model. This paper proposes policy suggestions including promoting inclusive finance development in central and western regions, optimizing capital allocation and bridging the digital divide, so as to provide references for improving urban-rural income distribution and realizing common prosperity.

Keywords: Inclusive Finance, Rural Residents’ Income Growth, Multiple Linear Regression.