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

Under the background of trade war and COVID-19,China has put forward the direction of economic development in both internal and external circulation,and emphasized the importance of internal circulation.In the construction of internal circulation,the most important thing is to expand the demand of domestic residents.With the national urbanization construction,the urban-rural economic gap has gradually increased,which leads to the differentiation of the satisfaction of the consumption demand of urban and rural residents,and the demand of rural residents is greatly depressed.Therefore,promoting the development of rural economy is particularly important to release the consumption demand of rural residents.Finance plays an important role in the process of economic development,but traditional financial services pursue profits and are difficult to penetrate into rural areas.Therefore,digital Inclusive Finance,as a financial development mode with new ideas,is a breakthrough.Digital inclusive finance uses digital technology to deepen the universality of finance,broaden the tentacles of financial services,sink financial services to rural areas,alleviate the financial exclusion of rural residents,and pave the way for the release of rural residents’ consumption.Therefore,studying the impact of digital Inclusive Finance on rural residents’ consumption is of great significance for releasing rural residents’ consumption potential,Deepening Rural Revitalization Strategy and building internal circulation mechanism to stimulate economic development.Based on the research at home and abroad,this paper analyzes the mechanism of Inclusive Finance Theory,consumption theory and digital Inclusive Finance affecting rural residents’ consumption,analyzes the actual situation of digital Inclusive Finance and rural residents’ consumption,summarizes the main problems,makes an empirical study on the impact of digital Inclusive Finance on rural residents’ consumption,and puts forward relevant policy suggestions according to the above analysis.Firstly,the connotation and characteristics of digital inclusive finance are determined;Then,it expounds the theoretical basis,mechanism analysis and practical situation analysis of digital Inclusive Finance and rural residents’ consumption,and finds that there are problems such as unbalanced supply structure,insufficient effective demand,poor rural credit ecological environment and low financial literacy of rural residents;Secondly,based on the above analysis,this paper puts forward assumptions,uses the panel data of 31 provinces from 2013 to 2020,constructs a fixed effect model,makes an empirical study on the overall impact,regional impact and intermediary mechanism of digital Inclusive Finance on rural residents’ consumption,and uses panel quantile regression.The research shows that:(1)on the whole,there is a significant positive correlation between digital Inclusive Finance and rural residents.(2)For regional differences,there is regional heterogeneity in the relationship between the two.Among them,digital Inclusive Finance has a significant positive impact on the consumption of rural residents in the western region.(3)From the perspective of intermediary effect,the per capita disposable income of rural residents has a complete intermediary effect,while the rural per capita wage income,rural per capita net operating income,rural per capita property income and rural per capita transfer income have a partial intermediary effect.(4)From the quantile regression results,the impact of digital Inclusive Finance on the consumption of rural residents with a consumption level of 50% and below is significantly positive.Finally,based on the above analysis,this paper puts forward some suggestions from the aspects of enhancing the supply capacity of digital Inclusive Finance,improving the effective demand of rural residents,cultivating a good credit environment and relevant policies.