Research On The Influence Of Digital Inclusive Finance On Household Debt

In recent years,China’s economic development level has achieved rapid growth,with not only the disposable income of households continuously increasing,but also the scale of debt continuing to expand.In general,moderate debt can play a role in smoothing household consumption,which is conducive to maximizing household welfare and maximizing utility throughout the entire life cycle.However,if the level of debt is too high,it not only hinders smooth consumption,but also affects family well-being,causing families to accumulate excessive debt risks and fall into financial difficulties,which has a negative impact on the implementation of China’s strategy to expand domestic demand.In recent years,China’s digital finance has developed rapidly,utilizing new technological means to extend its "tentacles" to relatively backward areas that traditional financial institutions have not fully covered,serving the long tail market,greatly alleviating the problem of financial exclusion,promoting the development of inclusive finance,and enhancing the availability of financial services.Then whether the development of digital inclusive finance will increase the possibility of households holding debt,the scale of debt and leverage ratio,and how the impact mechanism is of certain research value.In this research context,this article selects the impact of digital inclusive finance on household debt as the theme.After reviewing relevant literature and theoretical foundations,four hypotheses are proposed,and the current situation of household debt in China is analyzed from two aspects: scale and structure.Then this paper uses the PKU-DFIIC and the CHFS data,with the help of the Probit and Tobit models,to discuss in detail whether the probability,scale and leverage ratio of household debt in China have increased under the development of digital inclusive finance,the differential impact on heterogeneous household debt,and the transmission mechanism of digital inclusive finance affecting household debt.The conclusion of this study is that the development of digital inclusive finance can significantly increase households’ debt levels.In terms of the fractal index of digital inclusive finance,the coverage breadth index has the greatest impact on households’ debt probability,debt scale,and asset liability ratio;The use of the depth index has a significant impact on households’ debt probability,debt scale,and asset liability ratio,and the impact is second only to the coverage breadth index;The digital support service level index mainly has a significant impact on the debt scale and asset liability ratio of households.Through a series of robustness tests such as variable substitution and new control variables,and endogeneity processing by IV Tobit model tool variable method,the robustness of this research conclusion is supported.In the mechanism test,it is found that the impact of digital inclusive finance on household debt can be transmitted through three mediators: social network,risk attitude and information constraints,and all of them have some mesomeric effect.In the heterogeneity analysis,it was found that digital inclusive finance has a stronger driving effect on the debt scale of households in cities with lower levels of development,ownership of a house,low real estate levels,large initial debt scale,middle-aged and young people,and high education levels;Moreover,digital inclusive finance has a greater positive impact on the asset liability ratio of households with low levels of financial knowledge.This research not only enriches the research theory in the field of digital finance and household debt,but also will have policy implications for relevant departments in China.It provides empirical evidence for classified policies to control household leverage ratio,and has practical significance in guiding families to participate in credit activities rationally and preventing excessive debt.This article believes that while correctly understanding and fully utilizing the positive role of digital inclusive finance in China’s economic and social development,it is necessary to actively promote the popularization of digital inclusive finance knowledge in the vast region,and guide families to establish reasonable financial concepts and risk attitudes,and participate in credit rationally;Be vigilant against the rapid growth of household sector debt,enhance risk management awareness,improve China’s credit system construction,and provide reasonable credit.