Digital Finance, Digital Usage Divide, and Urban–Rural Income Gap: Evidence from China
Summary. Digital finance can reduce China's urban-rural income gap, but digital usage disparities complicate this effect. Using data from 274 Chinese cities, the study finds a U-shaped relationship where digital finance initially widens the gap, then narrows it once digital adoption exceeds a threshold. Traditional financial systems moderate this pattern. The research recommends improving rural financial conditions, accelerating digital transformation of conventional finance, and strengthening rural digital education to address usage disparities.
Cite this article
Xiao, Y., Yin, M., Wang, H., & Xiang, Y.. (2025). Digital Finance, Digital Usage Divide, and Urban–Rural Income Gap: Evidence from China. Systems. https://doi.org/10.3390/systems13030145
Xiao, Yanfei, et al. “Digital Finance, Digital Usage Divide, and Urban–Rural Income Gap: Evidence from China.” Systems, 2025. https://doi.org/10.3390/systems13030145.
Xiao, Yanfei, Mengli Yin, Huilin Wang, and Yunbo Xiang. 2025. “Digital Finance, Digital Usage Divide, and Urban–Rural Income Gap: Evidence from China.” Systems. https://doi.org/10.3390/systems13030145.
@article{xiao-2025-digital-finance-digital-usage-divide,
title = {Digital Finance, Digital Usage Divide, and Urban–Rural Income Gap: Evidence from China},
author = {Yanfei Xiao and Mengli Yin and Huilin Wang and Yunbo Xiang},
journal = {Systems},
year = {2025},
doi = {10.3390/systems13030145},
url = {https://doi.org/10.3390/systems13030145}
}
TY - JOUR TI - Digital Finance, Digital Usage Divide, and Urban–Rural Income Gap: Evidence from China AU - Yanfei Xiao AU - Mengli Yin AU - Huilin Wang AU - Yunbo Xiang JO - Systems PY - 2025 DO - 10.3390/systems13030145 UR - https://doi.org/10.3390/systems13030145 ER -
Details
- DOI
- 10.3390/systems13030145
- Countries
- China
- Regions
- Asia
- Categories
- broadband-and-digital, regional-innovation-systems, policy
- Added
- 2026-04-28