Research On The Impact Of Financial Inclusion On Household Consumption

In 2021,the contribution rate of China’s final consumption expenditure to economic growth reached 65.4%,and consumption has become an important driving force for economic growth.In the context of the increasingly complex international economic environment and the impact of the COVID-19,promoting sustainable economic growth by stimulating residents’ consumption and optimizing the structure of residents’ consumption is an important measure for China’s high-quality economic development.The report of the 19 th National Congress of the Communist Party of China emphasized the need to improve the system and mechanism for promoting consumption and strengthen the basic role of consumption in economic development.China has included "comprehensive promotion of consumption" into the 14 th Five-Year Plan,and issued a number of policies to expand domestic demand and promote consumption.As an important tool to improve the financial market,financial inclusion increases the possibility of households to obtain financial services and enhances the financial consumption ability of households.Therefore,from the perspective of micro-households,this paper summarizes the relevant theories of financial inclusion and consumption,and analyzes the development of financial inclusion and the current situation of household consumption in China,using China Household Finance Survey data to build a household financial inclusion indicator system,the average Euclidean distance method is used to measure household financial inclusion,and the impact of financial inclusion on household consumption level and consumption structure is explored through OLS model regression,quantile regression,and Tobit model regression methods,and the heterogeneity of the impact is carried out according to urban and rural areas and regions;construct two mediating variables of income level and liquidity constraint,and use the mediating effect analysis method to test the income growth mechanism and the liquidity constraint mitigation mechanism of financial inclusion affecting household consumption respectively.The research conclusions of this paper are as follows:(1)Financial inclusion can significantly improve household consumption level,and has a more significant impact on households with lower consumption levels;financial inclusion can promote the upgrading of household consumption structure,which is manifested in a significant increase in development-oriented and enjoyment-oriented consumption,and reduce the proportion of survival-oriented consumption.(2)Financial inclusion promotes the consumption level of households in urban and rural areas,and the eastern,central and western regions,and has a greater impact on the consumption level of urban households and households in the eastern region.Financial inclusion has improved and upgraded the consumption structure of households in urban and rural areas,as well as in the eastern,central and western regions,and has a greater impact on urban households and households in the eastern region.(3)In the research on the influence mechanism,using the mediation effect analysis method,it is found that the income growth mechanism and the liquidity constraint mechanism are both established in the promotion of household consumption level and the improvement of household consumption structure by financial inclusion.According to the research conclusions,this paper puts forward four suggestions: increase the penetration rate of financial services and improve the quality of financial services;pay attention to the development of financial inclusion in rural and western regions;support financial services for the real economy and promote the upgrading of household consumption structure;actively carry out financial education for residents,to guide the rational consumption of households.