Evaluating the Role of Inclusive Internet Finance using IOT in Reducing the Urban-Rural Income Disparity in the Age of E-Commerce

Abstract

Background information: The rise of e-commerce, inclusive internet finance supported by IoT offers new pathways to address urban-rural income disparities by providing accessible financial services to underserved communities. Objectives: This study aims to evaluate the impact of inclusive internet finance on reducing income inequality between urban and rural areas and to identify the potential of IoT-enabled financial tools in fostering economic equity. Methods: Various model combinations were used, including panel data regression, DID, PSM, and SEM analyses, to assess the impact of IoT-driven inclusive finance on income inequality. Results: The method incorporating PDR, DID, PSM, and SEM successfully reached an accuracy of 93.5%, showing the substantial benefits of IoT-enabled finance in reducing urban-rural income disparities. Conclusion: IoT-driven inclusive internet finance presents a promising solution to reduce income inequality, providing rural areas with enhanced financial access and supporting sustainable development in the digital economy.