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Poverty Reduction Effects of Rural Inclusive Finance in the Context of Rural Revitalization: A PSM-DID Test Using Panel Data from Five Western Provinces
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Abstract
This study evaluates the poverty alleviation impact of rural inclusive finance under China’s Rural Revitalization Strategy, employing a Propensity Score Matching-Difference-in-Differences (PSM-DID) approach on panel data from five western provinces (2015–2022). By distinguishing between treated (villages with inclusive finance interventions) and control groups, we quantify the causal effects of financial inclusion on household income, consumption, and multidimensional poverty indices. Results indicate that inclusive finance reduces the poverty headcount ratio by 12.3%, with stronger effects in regions with higher digital financial penetration. Mechanism analysis reveals that improved access to credit and insurance products mediates poverty reduction, particularly for households engaged in agricultural entrepreneurship. The findings underscore the synergistic role of inclusive finance and rural revitalization policies, offering actionable insights for policymakers to optimize financial inclusion programs in underdeveloped regions.
Keywords
Rural inclusive finance, poverty reduction, Rural Revitalization Strategy, PSM-DID, multidimensional poverty, digital financial inclusion
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Cite this article
Sun,H. (2025). Poverty Reduction Effects of Rural Inclusive Finance in the Context of Rural Revitalization: A PSM-DID Test Using Panel Data from Five Western Provinces. Journal of Economic and Managerial Dynamics,1(1),46-54.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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