The Impact Of Digital Inclusive Finance On Residents’ Consumption Level

As a new engine of economic growth,the proportion of China’s household consumption in GDP will increase to 65.4% in 2021.With the rapid development of China’s economy,residents’ consumption preference has gradually shifted from necessities to high-end personalized demand,while the domestic supply structure is difficult to adapt to residents’ new consumption demand,resulting in consumers turning to imported goods and inventory problems in local enterprises.The CPC Central Committee and the State Council issued several opinions on improving the consumption promotion system and further stimulating residents’ consumption potential,emphasizing that the government should closely follow the new trend of transformation and upgrading of residents’ consumption system,break through institutional obstacles through reform and innovation,make efforts at both ends of supply and demand,form a virtuous cycle of mutual promotion between consumption guidance and supply side,and promote the improvement of residents’ consumption level in an all-round way.Financial services can promote the improvement of residents’ consumption level.In the era of digital economy,digital Inclusive Finance has added digital and technological advantages in the form of traditional financial services.It provides financial products to residents through digital technology,alleviates income constraints and credit constraints,and promotes residents’ consumption,especially in remote and poor areas;It can also provide a better financing environment for start-ups and corporate innovation,promote the supply side reform of supply products,and generate new supply to meet new demand.Therefore,the research of this thesis will help to rely on the real economic environment,combined with the existing financial instruments to promote the growth of residents’ consumption level,and give better play to the supporting role of consumption for economic growth.On the basis of reading and combing the relevant literature and development status of digital Inclusive Finance and residents’ consumption level,this paper discusses the impact mechanism of digital Inclusive Finance on Residents’ consumption level through consumer demand side and product supply side.Then,using the short panel data of 31 provinces in China from 2011 to 2020,we carry out regression from the national level to test the mechanism of digital Inclusive Finance affecting residents’ consumption,and analyze the heterogeneity at the regional and urbanization levels.The study found that:(1)digital inclusive finance can improve residents’ consumption level,in which the breadth and depth of coverage are positively correlated with consumption level,while the degree of digital support has no significant impact.It may be that the deepening of digital degree also brings some potential consumption risks,offsetting part of the promotion effect.(2)Digital Inclusive Finance has a heterogeneous impact on consumption in terms of region and urbanization rate.It has stronger influence in the eastern region or areas with high urbanization rate.(3)Digital inclusive finance can directly promote the improvement of residents’ consumption level through digital payment,consumer credit and insurance on the demand side;On the supply side,residents’ consumption potential can be indirectly released through regional entrepreneurship and technological innovation.Finally,combined with this research,this thesis puts forward three suggestions: strengthen the construction of digital infrastructure,standardize and improve financial products and services,and formulate financial products and services.