Research On The Impact Of Digital Inclusive Finance On Rural Residents' Consumptio

The report of the 19 th National Congress of the Communist Party of China in 2017 proposed to "Improve the system and mechanism for promoting consumption and strengthen the basic role of consumption in economic development".The 7th Meeting of the Financial and Economic Commission of the CPC Central Committee in 2020 stressed the need to build a new development pattern featuring domestic cycles as the main body and both domestic and international cycles reinforcing each other.To activate the domestic circulation,we must fully grasp consumption as one of the three carriages to promote the economy.China’s vast rural areas,as the most underdeveloped regions,have great potential for economic development and domestic demand growth.However,at present,there are still many problems in rural areas of China,such as insufficient consumption,low level of industrial structure,poor rural financial development and so on.There are still many challenges in developing rural consumption potential and helping rural revitalization.In this context,this paper focuses on the impact of digital inclusive finance on the consumption level and structure of rural residents,and analyzes the impact differences in different regions,with the intention of providing a reference for formulating policies to promote rural residents’ consumption.This paper summarizes the current academic research results in this field by combing the relevant literature on digital inclusive finance and rural residents’ consumption,and lays a foundation for future analysis.First of all,by analyzing the current situation of digital inclusive finance and rural residents’ consumption,it is found that the development of digital inclusive finance has transited from rapid growth to normal growth since 2011,and the differences between regions have gradually narrowed;At the same time,the consumption level of rural residents continues to improve,and the consumption structure also tends to be personalized and affluent.Then,combined with relevant theories,this paper expounds the mechanism of digital inclusive finance affecting rural residents’ consumption,and proceeds from two aspects: direct effect and indirect effect.Further,this paper empirically tests by constructing a fixed effect model.The main data used are the digital inclusive financial index and the consumption level of rural residents at the level of prefecture-level cities from 2011 to 2019.Finally,it draws the following conclusions:(1)Digital inclusive finance has a significant promoting effect on the consumption of rural residents,and the two show a "U" shaped nonlinear relationship,the promotion function is still valid after excluding the data of municipalities and provincial capitals.(2)For different consumption structures,digital inclusive finance can significantly affect the consumption of food,clothing,life and education.At the same time,compared with subsistence consumption,it has a greater role in promoting the development of entertainment consumption,indicating that there is a phenomenon of consumption structure upgrading.(3)Further,digital inclusive finance can directly promote the growth of rural residents’ consumption through digital payment,digital insurance and digital credit,and can also promote rural residents’ income and consumption by improving the level of rural financial services.(4)In the aspect of heterogeneity analysis,this paper also finds that digital inclusive finance has the greatest impact on the consumption of rural residents in the western region;At the same time,this paper innovatively proposes the regional analysis of whether it is the main grain-producing area and the cluster analysis of the development level of digital finance.It is found that the impact of digital inclusive finance on the main grain-producing areas is stronger than that of non-main grainproducing areas.Through the cluster analysis,it is also found that the role of digital inclusive finance in promoting residents’ consumption in some areas is not significant.Finally,according to the research results of this paper on digital inclusive finance and rural residents’ consumption,the following four suggestions are put forward:(1)improve the infrastructure of digital inclusive finance and optimize the rural financial business environment.(2)Implement the regional development strategy of digital finance and balance the differences in the development level of rural areas.(3)Provide multi-channel consumption promotion path of digital finance to achieve stable and long-term income increase of rural residents.(4)Improve the comprehensive digital financial literacy of rural residents and accelerate the shift to highlevel consumption.