An Analysis of the Impact of Digital Inclusive Finance on the Well-Being Index of Rural Residents in the Context of Rural Revitalization

The rural revitalization strategy, as an important foundation for China's modernization in a new stage and a new era, is a project of major concern to the Party and the state. Theoretically, rural revitalization can empower the agricultural industrial chain, integrate the credit system, and improve financial accessibility through digital inclusive finance, thereby increasing rural residents' income, narrowing the income gap, and ultimately raising farmers' well-being index. Therefore, while drawing on existing literature and analyzing and summarizing relevant classical theories, this study theoretically examines the mechanism through which digital inclusive finance affects the well-being index of rural residents. It collects specific indicators for measuring rural residents' well-being index from databases including the National Bureau of Statistics, the China Rural Statistical Yearbook, and the China Family Panel Studies, and comprehensively applies the entropy method to calculate the well-being index of rural residents before conducting an empirical study. The results show that: (1) digital inclusive finance and its three dimensions - breadth of coverage, depth of use, and degree of digitization - can all improve the well-being index of rural residents; (2) the development of digital inclusive finance can improve the well-being index of rural residents by narrowing the urban-rural income gap, while the urban-rural income gap and the level of urbanization have positive moderating effects; (3) digital inclusive finance and its three dimensional indices can promote the well-being index of rural residents in the eastern, central, and western regions, although the effects differ slightly; and (4) when the density of financial institutions in rural areas differs, the effect of digital inclusive finance on improving the well-being index of rural residents also differs. Based on the research conclusions, the following policy recommendations are proposed: (1) improve digital infrastructure and eliminate cognitive barriers; (2) enhance the adaptability of financial services and eliminate financial exclusion; (3) popularize financial knowledge and improve digital literacy; (4) promote development through multi-dimensional and multi-group collaboration; and (5) pay attention to residents' lives and improve rural well-being.