Research On The Impact Of Digital Financial Inclusion On Consumption Upgrade

In 2020,due to the impact of the new pneumonia epidemic and the sharp deterioration of the relationship between China and the United States,China’s domestic investment return gradually reduced,the growth rate of residents’ income and net market exports continued to slow down,and the external circulation path led by external demand continued to be hindered.In order to stimulate economic recovery,the Fifth Plenary Session of the 19th CPC Central Committee explicitly proposed to accelerate the construction of a new development pattern of"domestic circulation as the mainstay and domestic and international circulation to promote each other",to comprehensively boost domestic demand and optimize consumer spending.However,in recent years,the digital inclusive finance business combined with Internet technology has been booming,just as the coin has two sides,the development of digital inclusive finance business will accelerate the ability of China’s capital market to absorb liquidity,and the phenomenon of "consumption upgrading and consumption downgrading"will occur.Therefore,in the current context,it is beneficial to discuss the relationship between digital inclusive finance and the upgrading of the consumption structure of the population,in order to improve our understanding of the consumption decisions of the population under uncertainty and identify the economic growth points under the new development pattern.In order to thoroughly study the relationship between digital inclusive finance and the structural upgrading of residents’ consumption,this paper firstly compares the relevant research results at home and abroad,clarifies the research perspective of this paper and analyzes the relationship between the two from both theoretical and current perspectives;secondly,on the basis of theoretical and current analysis,panel data of 31 provinces in China from 2011 to 2019 are selected and a two-way fixed-effect model is applied to verify the impact of digital inclusive finance and its sub-indicators on the structural upgrading of residents’ consumption.Secondly,considering that the relationship between the two may be affected by many factors such as the degree of openness to the outside world and the level of technological innovation in the context of building a new development pattern,this paper attempts to further explore the possible non-linear relationship between the two based on different heterogeneity conditions by using a panel threshold model;finally,this paper verifies that the promotion of Finally,the paper verifies whether the three transmission paths of promoting industrial structure upgrading,reducing precautionary savings and alleviating liquidity constraints are smooth,and clarifies the internal transmission logic between them.Based on the results of the two-way fixed effects model,this paper draws the following conclusions;(1)the development of digital inclusive finance can significantly promote the upgrading of consumption structure of urban and rural residents in China;(2)the upgrading of industrial structure is an important transmission path between the two in both urban and rural areas,while the paths of reducing residents’ savings and alleviating liquidity constraints only hold in rural areas;(3)the promotion of digital inclusive finance on the upgrading of residents’ consumption has a linear relationship.the promotion effect of digital inclusive finance on residents’ consumption upgrade is significantly heterogeneous,and its promotion effect on residents’ consumption structure upgrade in the eastern cities of China is better.(4)with the further optimization of the degree of openness to the outside world,the promotion effect of digital inclusive finance on the upgrading of consumption structure of urban and rural residents in China is also enhanced;(5)technological innovation is the direct driving force of technological development,and maintaining a relatively reasonable level of technological innovation can enable digital inclusive finance to better play the "incentive"role;for the development of digital inclusive finance,it is more effective in promoting the upgrading of consumption structure of urban and rural residents."(6)For residents,income is an important factor influencing consumption decisions,and a higher income level is like a"catalyst",which helps to enhance the effectiveness of the influence between the two.At the end of this paper,in order to enable China to better achieve the expansion of domestic demand under the new development pattern of "double cycle",this paper proposes to build a more comprehensive digital inclusive financial platform,create a robust credit risk prevention and control system,and better utilize the "inclusive" function of digital inclusive finance from the perspective of making good use of this tool to improve the efficiency of financial services.The paper puts forward three policy recommendations,including building a more comprehensive digital inclusive finance platform,creating a robust credit risk prevention and control system,and giving better play to the "universality" of digital inclusive finance.