Research On The Impact Of Digital Inclusive Finance On Residents’ Consumption

Under the background of double-cycle development,expanding domestic demand has gradually become an important engine to promote China’s economic growth.Although the consumption level of China’s residents has been growing,the consumption rate of residents is still far below the world level,and the consumption potential of residents needs to be further tapped and released.The development of digital inclusive finance meets the objective requirements of financial development in the Internet era.By using the advantages of the Internet to expand the coverage of financial services and make financial services sink,it aims to provide services for more residents with financial needs and maximize the use of financial resources.As the deepening of inclusive finance,digital inclusive finance has profoundly affected residents’ economic activities and changed their consumption habits.Therefore,it is of great significance to explore the impact of digital inclusive finance on residents’ consumption and its mechanism of action,in order to stimulate residents’ consumption demand,promote residents’ consumption growth and achieve sustainable economic development.On the basis of combing related research,this paper deeply explores the impact of digital inclusive finance on residents’ consumption.Firstly,combining with relevant theories,starting from the characteristics of digital inclusive finance,and combs the mechanism of its impact on residents’ consumption,and puts forward that digital inclusive finance mainly affects residents’ consumption through three ways: facilitating payment,easing liquidity constraints and reducing uncertainty risks.Secondly,it analyzes the development characteristics and current situation of digital inclusive finance and residents’ consumption in China.Again,using the digital inclusive finance index and household micro-data,the empirical analysis is conducted using a two-way fixed effects model with resident consumption as the explanatory variable and the digital inclusive finance index as the core explanatory variable,with the inclusion of control variables at multiple levels.On this basis,it further analyses the impact of the three dimensions of digital inclusive finance on resident consumption.The instrumental variable approach is used to address the endogenous problem,and the robustness of the benchmark regression is tested.The heterogeneity is analyzed from the aspects of region,urban-rural and household income levels.Finally,the mediating effect model is used to test the mechanism of the effect of digital inclusive finance on residents’ consumption.Through empirical analysis,this paper draws the following conclusions: Firstly,digital inclusive finance can significantly promote residents’ total consumption,survival consumption and development and enjoyment consumption,and the impact of digital inclusive finance on residents’ survival consumption is greater than that of development and enjoyment consumption.By dimension,the breadth of coverage,depth of use and digitization index of digital inclusive finance all have a positive effect on residents’ consumption.Secondly,using instrumental variable approach to address endogenous problems,digital inclusive finance can still significantly promote residents’ consumption.Thirdly,there is heterogeneity in the impact of digital inclusive finance on the consumption of residents in urban and rural areas,east,central and western regions and different income classes,with digital inclusive finance having a more pronounced effect on promoting the consumption of residents in urban,central and western regions and low-income classes.Fourthly,digital inclusive finance can affect residents’ consumption through three mechanisms: facilitating payment,alleviating liquidity constraints and reducing uncertainty risks.Based on the findings of the research,this paper puts forward relevant countermeasures and suggestions,with a view to further enhancing the promotion of the development of digital inclusive finance to residents’ consumption.Improve the construction of financial infrastructure and optimize the consumption environment of residents.Strive to eliminate the digital divide,enhance residents’ consumption capacity and narrow the consumption gap.Strengthen publicity,improve the penetration of digital inclusive finance,and mobilize the enthusiasm of residents to participate in digital inclusive finance.