Spatial spillover effect of green finance on urban-rural income gap

Abstract

ABSTRACT This paper constructs a spatial panel data model and establishes the Green Finance Index of China’s provinces with the entropy value method to empirically test the impact of green finance on China’s urban-rural income gap. The results of the study show that green finance not only reduces the local urban-rural income gap but also has an obvious inhibitory effect on the urban-rural income gap in the surrounding areas. In terms of regional analysis, green finance has limited inhibitory effects in developed regions and significant inhibitory effects in developing regions.