The role of digital inclusive finance in alleviating multidimensional relative poverty in rural areas

This study empirically examines the impact of digital inclusive finance on multidimensional relative poverty in rural areas using panel data from the China Family Panel Studies (CFPS) from 2010 to 2022, the Peking University Digital Inclusive Finance Index, and urban statistical yearbooks through two-way fixed effects model. The findings reveal that digital inclusive finance significantly alleviates multidimensional relative poverty in rural areas. The primary mechanisms driving this poverty-reducing effect include stimulating green innovation behaviors among rural households and expanding the scale of green credit. Heterogeneity analysis indicates that the poverty-reducing influence of digital inclusive finance is more prominent among households with lower digital skills, whereas it exacerbates poverty in central regions. Therefore, poverty governance strategies should focus on enhancing the digital literacy and innovative capacities of impoverished rural households, while also building a differentiated digital inclusive finance system.