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

As the ultimate demand of society,household consumption is not only the embodiment of people’s livelihood and well-being,but also an important engine of economic circulation,which can effectively lead the innovation and upgrading of supply and improve quality and efficiency,thus forming a balanced system of mutual promotion or benign interaction between supply and demand.The report of the 20 th National Congress of the Communist Party of China further emphasized "organically combining the implementation of the strategy of expanding domestic demand with the deepening of supply-side structural reform",once again emphasized the need to give full play to the basic role of consumption in economic development,and take the expansion of domestic demand as the focus of the new development pattern of dual circulation.As an important embodiment of household consumption,consumption upgrading plays a self-evident role in the transformation of consumption concepts and consumer demand,and can promote the transformation and upgrading of supply.At the same time,digital finance is supported by technological means such as the Internet,big data,cloud computing and other technologies,digital inclusive finance has strong geographical penetration,which can break through geographical boundaries and provide efficient and convenient financial products and services for all customer groups with financial needs to support their economic or consumption activities,thereby improving their living standards.Therefore,exploring the impact of digital inclusive finance on consumption upgrading is of great significance to stimulate the potential of domestic demand and promote the upgrading of household consumption.However,the development level of digital inclusive finance in different regions may have different impacts on residents’ consumption upgrades,and it is worth exploring whether their impact on consumption upgrading is contrary or trendy.Firstly,the feasibility of the study is found by combing the relevant literature;Secondly,combined with the theory of inclusive finance and the theory of household consumption,the specific path of digital inclusive finance affecting consumption upgrading is analyzed from the perspectives of supply side and demand side.Then,combined with the relevant contents of the supply side and the demand side,an index system to measure China’s consumption upgrading was constructed,and its current situation and regional differences were analyzed.Finally,combined with the digital financial inclusion index and the spatial Durbin model,the empirical research is carried out,in which heterogeneity analysis by region and dimension and robustness and endogenous tests are carried out.The results show that:(1)There are obvious regional differences between the level of consumption upgrading and the development level of digital inclusive finance in China,and there are obvious characteristics of spatial agglomeration,which are mainly manifested as "low-low" and "high-high" agglomeration.Digital inclusive finance has a great role in promoting consumption upgrading in the region,but it has a certain degree of inhibition effect on consumption upgrading in neighboring regions.(2)From the perspective of the differences in the performance of the three regions,the development of digital inclusive finance in the three regions has significantly improved their consumption upgrading level,while the promotion role in the western region is more obvious,followed by the eastern region;However,the development of digital inclusive finance in the western region has a more obvious inhibitory effect on the consumption upgrading level of neighboring regions,while the inhibitory effect on the eastern region and the promotion effect in the central region are not significant.(3)From the perspective of dimensional differences,the breadth of coverage has the most obvious role in promoting consumption upgrading,followed by the degree of digitalization;Although the degree of digitalization has a negative effect on consumption upgrading in the region,its spillover effect masks this impact,resulting in a positive overall effect.Based on the results of the study,the following suggestions are put forward: first,strengthen interregional exchanges and cooperation;Second,accelerate the construction process of digital infrastructure;Third,improve the digital financial literacy of all residents;Fourth,improve the reliability and robustness of digital financial services transactions;Fifth,promote the innovation and upgrading of digital inclusive financial products and services.