Inclusive finance, agricultural TFP changes, and the urban-rural income gap: from the perspective of structural issues of inclusive finance
(2.Guangdong Provincial Key Laboratory of Technology and Finance & Big Data Analysis, Guangzhou 510521, China 510521)
【Abstract】This study uses provincial panel data to empirically analyze the effects of inclusive finance and agricultural total factor productivity (TFP) on the urban-rural income gap, based on mediating effect and interaction effect models. The results show that inclusive finance, as the main factor, can reduce the urban-rural income gap significantly, in both a direct manner and an indirect manner. Agricultural TFP contributes more than 40% of the mediating effect. However, existing inclusive financial resources are excessively inclined toward small enterprises, the salariat, and wealthy farmers. This mitigates the role of such finance in narrowing the urban-rural income gap and exacerbates the internal income gap between low-income groups. Therefore, the structural issues in the development of inclusive finance require a development-oriented approach in “blood-creation” mode. This will have significant policy implications for improving the structural issues in the development of inclusive finance and narrowing the urban-rural income gap through development-oriented inclusive finance.
【Keywords】 inclusive finance; agricultural TFP; urban-rural income gap; structural issues ;
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