Research on poverty reduction effect of digital financial inclusion based on K-LSTM-ecm modeling

In this paper, we use the K-LSTM-ecm model to test the mediation effect of digital financial inclusion and use the level of digital financial inclusion development as the threshold variable and core variable to examine the role of digital financial inclusion development on the poverty reduction effect. The variables are brought back to equilibrium by correcting the errors, and the coefficients of the different terms of the variables are utilized to carry out the calculation of the predictive value of digital financial inclusion. It has been found that the digitization degree index for digital financial inclusion increases fivefold, and the disposable income per capita of residents increases from 18,000 yuan to 31,000 yuan. It shows that the combination of digital financial inclusion and the K-LSTM-ecm model has certain practical significance for future rural financial innovation, as well as the development of financial technology. © 2023 Can Wang and Wenhui Li, published by Sciendo.