Can the Inclusive Digital Finance Alleviate Rural Multidimensional Relative Poverty

Alleviating relative poverty is the focus of poverty alleviation after 2020. Can digital inclusive finance, which aims to improve the credit availability for the poor, effectively alleviate multidimensional relative poverty? A theoretical analysis is made of the impact of the inclusive digital finance on alleviating multidimensional relative poverty. Based on the financial index database combining China's financial household survey in 2017 (CHFS) and Peking University inclusive digital finance index, a multidimensional relative poverty index is constructed and the impact of inclusive digital finance development on multidimensional relative poverty is empirically analyzed. It is found that the development of inclusive digital finance can effectively reduce income inequality and subjective relative deprivation, which is helpful to alleviate relative poverty but will increase the risk of poverty return. Further research shows that inclusive digital finance alleviates multidimensional relative poverty mainly by reducing "credit constraint" and increasing "human capital investment". The effect of digital financial inclusion on alleviating relative poverty is more obvious in low-income groups, groups with high school education and above, and rural residents. Therefore, at the stage of relative poverty control, on the one hand, the construction of inclusive digital finance in poor areas should be accelerated; on the other hand, the supporting services related to digital technology should be strengthened to prevent the risk of poverty caused by the digital divide.