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

Under the new development pattern,promoting consumption upgrading has become the main focus of releasing the potential of China’s domestic demand and promoting high-quality economic development.As a product of the combination of inclusive finance and digital technology,digital inclusive finance can use digital technology to provide accessible financial services for vulnerable groups and long-tail groups,help residents upgrade consumption,and improve the well-being of Chinese people.Exploring the impact of digital inclusive finance on residents’ consumption upgrading,guiding digital inclusive finance to better serve the domestic circulation,expand domestic demand,give play to the basic role of consumption in economic growth,and achieve high-quality economic development are the main issues studied in this paper.This paper focuses on the goal of high-quality consumption development and analyzes the impact of digital inclusive finance on residents’ consumption upgrading.Firstly,the relevant literature at home and abroad is sorted out and elaborated,and the relationship between the two is discussed based on the financial exclusion theory,long-tail theory,search theory,absolute income hypothesis,relative income hypothesis and life cycle theory,on this basis,the utility function including digital inclusive financial factors is constructed for theoretical analysis and research hypotheses are proposed,and the characteristics of Chinese residents’ consumption upgrading are analyzed by constructing household consumption upgrade indicators through AIDS models.Furthermore,using the China Family Panel Studies 2014,2016 and 2018 data to match the digital inclusive financial index of Peking University,a fixed-effect model was constructed to empirically test the impact of digital inclusive finance on residents’ consumption upgrading,and a series of endogenous and robustness tests were carried out.Considering the structural effects of digital inclusive finance and the heterogeneity of classes,groups and regions,this paper analyzes the heterogeneity of different consumer classes,different education groups,geography and urban-rural regions on the basis of benchmark regression.The mediation effect model was further constructed to test the mediating effects of income effect,social security effect and industrial structure upgrading effect.The results show that: first,digital inclusive finance can promote the upgrading of household consumption,and the conclusion is still valid after a series of endogenous and robustness tests;Second,from the perspective of structural effects,the breadth of coverage,depth of use and degree of digitalization of digital inclusive finance can promote the upgrading of household consumption.Third,the heterogeneity analysis shows that digital inclusive finance promotes the consumption upgrading of low-consumption classes,low-educated groups,and residents in central and western regions and rural areas.Fourth,mechanism analysis shows that digital inclusive finance can promote household consumption upgrading by increasing residents’ income level,reducing residents’ income inequality,improving social security level and upgrading industrial structure.Therefore,to promote the expansion of domestic demand with the upgrading of household consumption,it is necessary to improve the digital inclusive financial ecosystem,continuously improve the income system and mechanism,reduce income inequality,improve the social security mechanism,promote the upgrading of the industrial structure.