The Impact Of Digital Financial Inclusion On The Upgrading Of Industrial Structure In Ethnic Areas

As the core of modern economy,finance plays an important role in economic development.However,since Chinese reform and opening up,the western ethnic areas have been facing problems such as unbalanced economic development and low development quality and efficiency.Simultaneously,due to the vast territory,the high cost of physical network coverage and the low availability of financial services of the western ethnic region,the shortage of financial resources and the problem of financial exclusion are prominent.It is difficult for low-income earners and small and micro enterprises to obtain financing,thus inhibiting the transformation and upgrading of the industrial structure.However,digital financial inclusion makes up for the shortcomings of traditional financial development.It is low transaction costs,wide coverage and high financial availability.It can broaden the scope of financial services and provide financing support for low-and middle-income groups and small and micro enterprises.Therefore,it is necessary to accelerate the financial support of digital financial inclusion to the poor in ethnic minority areas,promote the rapid development of finance in ethnic areas,and thus upgrade the industrial structure of ethnic areas.First,this paper introduces the background of digital financial inclusion,reveals the important role of digital technology in promoting financial inclusion,and also proposes the necessity and significance of developing digital financial inclusion in ethnic areas.Secondly,it summarizes the relevant literature on the impact of financial inclusion and digital economy on the upgrading of industrial structure.This paper analyzes and summarizes the main related theories,influencing mechanisms and development status of predecessors on the development of digital financial inclusion and the upgrading of industrial structure.Finally,based on panel data and 35prefecture-level cities(deleted due to serious lack of data in the Tibet Autonomous Region)are used to make fixed-effect models,mediation effect and three research methods like literature analysis,theoretical analysis and empirical research to analyze the development of digital financial inclusion.Conduct an empirical study on the impact of digital financial inclusion on industrial structure upgrading in ethnic autonomous regions.Based on the research results,the following conclusions are drawn.First,from the perspective of the whole sample,my country’s development of digital financial inclusion in ethnic areas and its three sub-dimensions all play a role in promoting the upgrading of the industrial structure.Second,from the perspective of sub-samples,digital financial inclusion in ethnic areas also promotes the upgrading of industrial structure.The coverage of digital inclusive finance in various ethnic autonomous regions and the depth of use of digital inclusive finance have a positive role in promoting the upgrading of the industrial structure.In terms of digitalization degree,the digitalization degree of digital financial inclusion in Inner Mongolia Autonomous Region and Guangxi Zhuang Autonomous Region promotes the upgrading of industrial structure,but the digitalization degree of digital financial inclusion in Ningxia Hui Autonomous Region and Xinjiang Uygur Autonomous Region has a reverse effect on industrial structure.This shows that the coverage and depth of digital financial inclusion play an important role in improving the industrial structure.Third,there is an intermediary effect between the development of digital financial inclusion and the upgrading of industrial structure in ethnic areas.The development of digital financial inclusion in ethnic areas promotes the upgrading of the industrial structure by promoting consumer demand.Therefore,based on the above research and conclusions,the following suggestions are put forward.First,the construction of the financial system should be improved from the construction of the credit system and the supervision system;the construction of laws,regulations and policies for digital financial inclusion in ethnic areas should be improved;and financial knowledge should be popularized to the public.Second,strengthen the construction of financial digital infrastructure in ethnic areas.Third,focus on the degree of digital support services.Fourth,digital financial inclusion drives consumption in ethnic areas and promotes industrial development.