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

Under the background of the new normal of China’s economic development,the formation of a new development pattern with domestic internal circulation as the main body and domestic and international dual circulation promoting development has become an inevitable requirement for the healthy development of China’s economy.First of all,the insufficient consumption capacity in China’s rural areas is the main reason for the weak domestic consumer demand.According to relevant statistics,the population living in rural areas in China is 509.79 million(the seventh national census),accounting for 36.11% of the total population,but the current consumer market at the township and village levels in China accounts for only 13.38% of the total consumer market.Second,the continuous development of Internet technology and financial innovation has helped rural areas to break the predicament of traditional financial models to a certain extent and promote income and consumption in rural areas.Based on this,this paper discusses the impact of digital inclusive finance on consumption in rural areas,which is of great significance to the consumption of rural residents and the expansion of the domestic consumer market.Based on Kane’s absolute income theory and Dusenbaley’s relative income theory,this paper analyzes the impact of digital inclusive finance on consumption scale and consumption structure in rural areas through absolute income effect and relative income effect from the perspective of income.Through the collection and collation of relevant literature,the intrinsic relationship between digital inclusive finance and rural residents’ consumption is clarified,and on this basis,this paper deeply studies the impact effect and intermediary transmission mechanism of digital inclusive finance on rural residents’ consumption.Firstly,based on the data of provincial panels across the country,this paper explains the impact of digital financial inclusion on the consumption scale and consumption structure upgrading of rural residents through a two-way fixed-effect model,and further discusses the impact of three sub-dimensions of digital financial inclusion(depth of use,breadth of coverage,and degree of digitalization)on rural residents’ consumption.At the same time,the impact of digital inclusive finance on rural residents’ consumption through income level is tested according to the stepwise regression method.In addition,the population sample was divided into multiple sub-samples for separate regression to analyze the heterogeneity of digital financial inclusion on rural consumption in different regions.The following conclusions are obtained:(1)Digital financial inclusion shows different impacts on the consumption scale and consumption structure of rural residents.Digital inclusive finance has a significant role in promoting the consumption scale of rural residents,but has a significant negative impact on the consumption structure of rural residents,which is manifested in the fact that rural residents’ demand for basic subsistence consumption is much higher than that for development and enjoyment.In addition,in the analysis of the impact of three sub-dimensional indicators on rural residents’ consumption,the depth of use and the degree of digitalization have a significant impact on the consumption scale and consumption structure of rural residents.The effect of coverage breadth on consumption scale and consumption structure is not significant,indicating that the system of digital inclusive finance in rural areas needs to be improved and strengthened.(2)Based on the theory of consumption income,digital inclusive finance can achieve the expansion of rural residents’ consumption scale by improving the absolute income level and relative income level of rural residents.(3)There is regional heterogeneity in the impact of digital financial inclusion on consumption in rural areas.Due to the different degrees of economic development in different regions,there is a digital divide between the eastern and western regions,which will also cause heterogeneity in the impact of digital inclusive finance on the consumption of rural residents in different regions.Based on the theoretical basis and empirical conclusions,this paper puts forward the policy opinions of digital inclusive finance on the expansion of rural residents’ consumption scale and consumption structure upgrading through four perspectives.That is,to strengthen the financial literacy of rural residents and realize the optimization of rural residents’ consumption and saving concepts;Gradually improve the digital inclusive financial system and fully implement digital financial inclusion;Bridging the digital divide between regions and actively promoting digital financial inclusion;Improve financial supervision and reasonably build a safe harbor for digital inclusive finance.