Research On The Impact Of Financial Technology On Consumption Upgrading Of Rural Residents In Shandong Province

With the advantages of low cost and high efficiency,financial technology is gradually changing the status quo of the lack of financial services in rural areas,and by enhancing the breadth of coverage and depth of use of financial services,it is playing the role of financial living water to drive consumption upgrading of rural residents.However,the slow development of financial technology in rural financial institutions and the poor financial infrastructure in rural areas have made it difficult for financial technology to give full play to its role in promoting consumption.As the first province in China with an agricultural output value of over a trillion dollars,Shandong Province has a large agricultural population and a strong agricultural base,making it a veritable agricultural province.This paper focuses on the impact of financial technology on the upgrading of rural consumption in Shandong Province,which will help to analyse the paths between the two and,based on the results of theoretical and empirical research,provide more targeted suggestions for the smooth operation of financial technology and the quality and expansion of rural consumption in Shandong Province.This paper focuses on the impact of financial technology on the upgrading of consumption of rural residents in Shandong Province.Firstly,by collating the literature and reviewing relevant information,the impact paths of financial technology on the upgrading of rural residents’ consumption are sorted out to lay a practical foundation for the following study.Secondly,with reference to previous studies,we construct a basic thesaurus of financial technology from five dimensions: basic technology,wealth management,payment clearing,service channels and resource allocation,based on the current development of financial technology and application scenarios,and use web crawler technology to measure the level of financial technology development in 16 cities in Shandong Province from 2011 to2020,as the data basis for the following empirical study.Again,considering the availability of data,the consumption level and consumption structure of rural residents are taken as the explanatory variables,the level of financial technology development is taken as the core explanatory variable,and the per capita disposable income of rural residents,fiscal expenditure on agricultural support,urbanisation level and urban-rural income gap are taken as the control variables to construct short panel data of 16 cities in Shandong Province from2011 to 2020,and a fixed-effects model is used to investigate The effect of financial technology on rural residents’ consumption level and consumption structure in Shandong Province was explored using a fixed-effects model.In addition,16 cities in Shandong Province were divided into two groups according to their years of education to explore the effect of financial technology on rural residents’ consumption upgrading under different levels of education,and robustness tests were conducted by two methods: double shrinkage tail treatment and changing the explanatory variables.Finally,considering that residents’ consumption is influenced not only by other factors in the current period but also by the consumption status in the previous period,this paper therefore includes a lagged period of rural residents’ consumption as a control variable and uses a systematic GMM model to further explore the effect of financial technology on rural residents’ consumption upgrading in Shandong Province.Through the above research,this paper draws the following conclusions: firstly,financial technology can not only directly drive rural residents’ consumption upgrading by enriching payment methods and meeting financial needs,but also indirectly help rural residents’ consumption upgrading by supporting the development of consumption service industries in rural areas and improving the consumption environment in rural areas;secondly,the development of financial technology in Shandong Province can promote rural residents’ Secondly,the development of financial technology in Shandong province can promote the increase of consumption level and the improvement of consumption structure of rural residents,and the conclusion still holds after adding a one-period lag of the explanatory variables;Thirdly,the higher the education level,the more obvious the pulling effect of financial technology on the consumption upgrade of rural residents,controlling for other variables,indicating that rural residents with higher education level are more likely to be affected by the financial technology boom compared to those with lower education level.The innovation of this paper lies in enriching the measurement method of the development level of financial technology in prefecture-level cities and improving the research perspective of financial technology on rural residents’ consumption upgrading,innovatively proposing that financial technology drives rural residents’ consumption to improve quality and expand capacity through influencing consumer service industries,and after studying the effect of financial technology on rural residents’ consumption upgrading in Shandong Province using a fixed-effects model,considering that residents’ consumption has a certain inertia and preference,which is a dynamic change process,the lagged one-period rural residents’ consumption variables are incorporated into the control variables,dynamic panel data are established,and a systematic GMM model is used to overcome the possible endogeneity problem of the explanatory variables and further the research of this paper.