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

In early 2020,the sudden arrival of COVID-19 not only hit the global economic development,but also brought a huge impact to the consumer market.Traditional aggregated and contact consumption,including non-essential goods for residents,is suppressed to a certain extent,but new consumption accelerates under the leadership of new business models.The "14th Five-Year Plan" and the outline of the 2035 Vision clearly point out that we should follow the trend of upgrading consumption,combine the expansion of consumption with the improvement of people’s quality of life,promote the development of consumption to green,healthy and safe,and steadily improve the level of consumption of residents.At the same time,we should cultivate new types of consumption and develop service consumption,which is also an important pillar to stabilize and expand consumption,cultivate a complete domestic demand system and build a new development pattern.With the deep integration of the Internet,big data,cloud computing and other new generation information technology with finance,the development of traditional inclusive finance has been hampered,and the development of digital inclusive finance has brought convenient and inclusive services and products to consumer groups of all social strata from multiple levels of depth and breadth,creating a high-quality consumer supply system,profoundly changing residents’ consumption habits,further enhancing market popularity,releasing consumption potential and promoting residents’ consumption It further enhances the popularity of the market,releases the consumption potential and promotes the quality upgrade of consumer consumption.2021 is the first year of the “14th Five-Year Plan”,and consumption is still the top priority of economic development.Therefore,this paper studies the impact of digital inclusive finance on China’s residential consumption,hoping to provide reference for further improving digital inclusive finance and related research on promoting residential consumption.According to the currently available literature,the impact of digital inclusive finance(DIF)on China’s residential consumption and the mechanism of its effect are explored at the theoretical level and the empirical level,respectively.Firstly,based on the theory of finance and consumption,the development changes of digital inclusive finance and the total and structure of China’s resident consumption are comprehensively analyzed;then annual panel data of the digital inclusive finance index and sub-dimensional index,per capita consumption expenditure of residents and other control variables of 31 provinces(autonomous regions and municipalities)in China from 2011 to 2019 are chosen to empirically test,by constructing a fixed panel model,the impact of digital inclusive finance on residents’ consumption,which also further analyzes urban-rural and regional heterogeneity in detail;finally,based on the theoretical foundation and mechanism of action,this paper analyzes the mechanism of action of digital inclusive finance on residents’ consumption,using urban-rural income gap and industrial structure level as mediating variables.The empirical results show that(1)at the national level,digital inclusive development can effectively increase China’s residents’ consumption and promote the upgrading of residents’ consumption structure;further analysis reveals that its sub-dimension of digitalization can significantly increase the total amount of residents’ consumption,the depth of use can contribute to the upgrading of consumption structure,while the breadth of coverage not only increases the total amount of residents’ consumption,but also plays an important role in the upgrading of consumption structure;(2)The results of urban-rural heterogeneity show that there is a positive promotion effect on both total and structure of urban and rural residents’ consumption,but there are also urban-rural differences,with the effect being better in rural areas than in towns;(3)regional heterogeneity analysis shows that the promotion effect of its development on residents’ consumption in eastern regions is better than that in central and western regions,and it can significantly promote the upgrading of consumption structure in western regions,but the promotion effect on the upgrading of consumption in eastern regions is not significant;(4)Based on the intermediary effect test,the urban-rural income gap and industrial structure upgrading play a mediating role in influencing the total consumption of residents,and the role of narrowing the urban-rural income gap is more obvious than that of industrial structure upgrading,while the intermediary effect of narrowing the urban-rural gap is not significant in the process of consumption structure upgrading,but industrial structure is still an important way to influence the upgrading of residents’ consumption structure.According to the research conclusions drawn from this paper,it is proposed to vigorously develop digital inclusive finance,especially strengthen the construction of digital infrastructure in rural and western regions,improve digital inclusive financial products and services,increase per capita disposable income of residents to narrow the gap between urban and rural income,adjust the industrial structure and build a new industrial system to promote resident consumption.