Research On The Influence And Its Approach Of Internet Finance Use Behavior On The Consumption Level Of Rural Households

In the context of escalating international trade friction,promoting domestic circulation and expanding domestic demand have become the key to ensure sustained and stable economic growth.Rural residents are restricted by low income for a long time,and their consumption desire is suppressed for a long time.With the continuous improvement of our country’s economic strength,the income level of rural residents has sustained and stable growth,and its long-suppressed consumption desire has been effectively released,showing greater consumption potential than urban residents.The implementation of the rural revitalization strategy has made the infrastructure construction in rural areas change with each passing day,making it possible for the emergence and development of Internet finance in rural areas.Therefore,in the context of domestic economic growth in urgent need of consumption as an important driving force,it is of great practical significance to analyze the influence and its approach of Internet finance use behavior on the consumption level of rural households for exploring effective ways to improve rural consumption and clarifying the important driving effect of Internet economy on rural consumption.Based on consumption theory,mental account theory and liquidity constraint theory,this thesis constructs a theoretical framework of the influence of Internet finance use behavior on the consumption level of rural households.On the basis of fully analyzing the current situation of rural households’ usage in Internet Finance and consumption level,using the data of 2019 China Household Finance Survey(CHFS),this thesis empirically examines the influence of Internet finance and different forms of usage in Internet finance on rural households’ consumption level.The robustness of the results was verified by instrumental variables and propensity score matching.At the same time,starting from the characteristics of Internet finance,further analyzes the mediating effect of payment environment and liquidity constraint on the influence of Internet finance use behavior on the consumption level of rural households,and uses Sobel test and Bootstrap test to test the mediating effect.Finally,starting from the characteristics of household head and family,the heterogeneity of the influence of Internet finance use behavior on the consumption level of rural households is analyzed.This thesis finds that the Internet finance use behavior has a significant promoting effect on the consumption level of rural households,and the Internet payment in the form of Internet finance use behavior has a more significant promoting effect on the consumption level of rural households than Internet wealth management and Internet lending.Different usage forms of Internet finance have different influence paths on the consumption level of rural households.Among them,Internet payment improves the consumption level of rural households by optimizing the payment environment,while Internet wealth management and Internet lending improve the consumption level of rural households by easing liquidity constraints.There is significant heterogeneity in the influence of Internet finance use behavior on the consumption level of rural households.In terms of region,Internet finance use behavior has a more significant promoting effect on the consumption level of rural households from eastern regions and(new)first-tier cities.In terms of education,the promotion effect of Internet finance use behavior on the consumption level of rural households gradually increases with the increase of household head’s educational background.In terms of age,the Internet finance use behavior has a more significant promoting effect on the consumption level of households with a younger head of household(less than 44 years old)and a higher head of household(more than 75 years old).In terms of household wealth,the promotion effect of Internet finance use behavior on the consumption level of rural households gradually increases with the increase of household wealth level.Based on the above research conclusions,this thesis puts forward the following policy recommendations: 1.Strengthen the publicity and training of Internet finance,appropriately lower the entry threshold of Internet finance,and improve the usage rate of Internet finance;2.Strengthen infrastructure construction in rural areas,promote the transformation of traditional consumption habits of rural households,and optimize the payment environment in rural areas;3.Accurately locate Internet financial user groups,improve the quality of Internet financial services,and ease the mobility constraints of rural households.