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

In 2020,for the first time,the CPC Central Committee proposed to "build a new development pattern with the domestic cycle as the main body and both domestic and international cycles promoting each other".In this context,consumption has become an important driving force for expanding domestic demand in the new era.However,from the reality,the savings rate of Chinese residents is still relatively high,and the consumption rate of residents is significantly lower than that of high-income countries.Sluggish consumption restricts China from forming a new pattern of "double cycle" development.The consumption potential needs to be further improved,and the consumer consumption structure needs to be further optimized and upgraded.As the product of the combination of digital technology and financial services,digital inclusive finance has certain advantages in promoting the upgrading of residents’ consumption.On the one hand,digital financial inclusion enables low-income groups and vulnerable groups that have long been excluded from financial services to enjoy formal financial services and improve the accessibility of financial services.On the other hand,digital inclusive finance can ease the problem of credit constraints,facilitate the intertemporal smoothing of consumption,and gradually become a new driving force to promote consumer consumption and realize the upgrading of consumer consumption.Therefore,it is of great significance to grasp the driving role of digital inclusive finance in upgrading residents’ consumption,explore its internal influencing mechanism,and give full play to the role of consumption in contributing to economic growth.First of all,this paper reviews domestic and foreign literature on consumer upgrading and digital inclusive finance.Then the theoretical mechanism and research hypothesis are discussed.Then,it expounds the development status of digital inclusive finance,and uses entropy weight method and linear weighting method to calculate the consumer upgrading index,so as to analyze the consumer upgrading status of each province.Finally,based on the Digital financial inclusion index and consumption upgrading index of Peking University from 2011 to 2020,the system GMM estimation method is used to empirically analyze the dynamic panel regression model,and the intermediary effect model is used to test whether the intermediary effect exists.The following conclusions are drawn: First,digital inclusive finance can significantly promote the upgrading of residents’ consumption,and the consumption habits of the previous period do have an impact on the consumption of the current period,namely,there is a "ratchet effect".Second,digital inclusive finance covers three dimensions,and its impact on residents’ consumption upgrading is different,mainly manifested as the coverage breadth has the greatest impact,the depth of use is the second,and the degree of digitalization is the least.In addition,the higher the development level of digital inclusive finance,the stronger its role in promoting the upgrading of residents’ consumption.Thirdly,through the intermediary effect test,it is found that residents’ income is the intermediary channel that digital inclusive finance affects residents’ consumption upgrading.This is reflected in the fact that digital inclusive finance expands residents’ income sources by improving residents’ employment and providing low-threshold financial investment products,thus promoting the upgrading of residents’ consumption.According to the conclusion,this paper puts forward the following suggestions: First,to improve the development level of digital inclusive finance,we should constantly strengthen the construction of digital infrastructure,eliminate the previously blank areas,and let more people enjoy the dividends brought by it.Second,we should adapt to the internal mechanism of consumption upgrading driven by the development of digital inclusive finance and give play to the transmission role of income.Third,focus on the guidance and publicity of digital inclusive finance to enhance residents’ participation;We will improve regulation of financial markets and foster a safe and reliable trading environment.