Research On The Influence Mechanism Of Digital Inclusive Finance On National Happiness Index

The report of the 20th National Congress of the Communist Party of China pointed out that making the people live a happy life is the "greatest of the country",and improving the national happiness is the inevitable requirement of the development stage of socialism with Chinese characteristics in the new era.Happiness is extremely important for everyone.It is a topic that has been going on with human development.For the world,happiness is an important engine to promote the progress of human civilization;For China,happiness is an important goal of the Party’s leading people in the process of building a socialist country with Chinese characteristics.The "Chinese Dream" is the heroic dream of the Party and the country leading the people to realize the great rejuvenation of the Chinese nation,and also the national dream of leading the people of all ethnic groups to pursue a happy life.Since the reform and opening up,the main social contradictions in China have changed with the development of the economy.Meeting people’s more diversified material and cultural needs,realizing a harmonious society,and following the core socialist values have become important measures to enhance national well-being.In the current era of rapid development of digital information technology,digital inclusive finance,driven by digital technology,has the inherent advantages of expanding the scope of inclusive finance and promoting inclusive growth.To some extent,it has overcome the bottleneck problems encountered in the process of promoting traditional inclusive finance and alleviated the limitations of inclusive finance for the "last mile".In addition,it can improve the fairness of financial resources and optimize the allocation of social resources by improving the allocation of financial resources,so the development of digital finance may be an important factor in improving national happiness.We should seize the new opportunities of digitalization and vigorously promote digital inclusive finance to improve the efficiency of the financial market,promote the transformation and development of the financial industry,and better serve the people’s lives.At present,relevant research on digital inclusive finance mainly focuses on improving economic income,reducing the urban-rural income gap,alleviating financial exclusion,strengthening employment innovation,and promoting high-quality economic development.This shows that digital inclusive finance has the function of improving the well-being of the people,but there is little evidence to directly demonstrate the relationship between the two.In order to have a more comprehensive and direct understanding of the happiness enhancement effect of the development of digital inclusive finance,this paper studies the impact of digital inclusive finance on the national happiness index,and deeply discusses the impact mechanism of digital inclusive finance on the national happiness index,which helps to grasp the opportunity period of the upward development of China’s digital inclusive finance,promote the realization of the "inclusive" goal,and enable digital inclusive finance to better empower China’s national happiness level.Firstly,this paper defines the concepts of digital inclusive finance and national happiness.In order to grasp the degree of national happiness more objectively,using the data of Chinese residents’ life from 2011 to 2021,the paper establishes the evaluation system of national happiness index through entropy method,and calculates the national happiness index of 30 provinces in China;Then based on the financial exclusion theory,the long tail theory,Maslow’s hierarchy of needs theory and the happiness economics theory,the research hypothesis of digital inclusive finance to improve the national happiness index was put forward,and the empirical analysis was carried out.The two-way fixed effect model is used to test the impact of digital inclusive finance on the national happiness index;At the same time,we use the intermediary effect model to study its mechanism;Then it further analyzes the impact of the detailed indicators of digital inclusive finance(coverage,depth of use,and degree of digitalization)on the national happiness index;In order to explore the characteristics of the impact in depth,the heterogeneity of different regions of the impact is compared by grouping in the horizontal dimension,and the lag of the impact is studied in the vertical dimension;Finally,the spatial effect of the impact is analyzed through the Dubin model.The research found that:(1)digital inclusive finance has a significant effect on the national happiness index;From the perspective of dimensions,coverage is the main driving force for digital inclusive finance to achieve the effect of happiness improvement;(2)Digital inclusive finance achieves the rise of national happiness index by improving consumption level and easing financial constraints;(3)The influence of digital inclusive finance on the national happiness index has regional heterogeneity,which is significant in the non-eastern region,but not in the eastern region;In addition,digital inclusive finance has the greatest effect on the improvement of national happiness in the next year,indicating that its effect on the national happiness index needs a certain time to ferment;(4)Digital inclusive finance has a spatial spillover effect on the improvement of the national happiness index.According to the empirical research conclusions,this paper puts forward relevant suggestions to promote the development of digital inclusive finance in China from the perspective of the improvement of gross national happiness: first,deeply promote the innovative development of digital finance,and strengthen the happiness index improvement effect of digital inclusive finance through digital technology innovation;secondly,continue to leverage the inclusive advantages of digital finance and strengthen the digital financial literacy of the people;thirdly,promote the diversification of digital financial products and services,promote consumer behavior and alleviate financing constraints through rich wealth management products and credit services,and thereby enhance the improvement effect of national happiness;fourthly,build a sound digital finance system,optimize supporting legal systems,and enable people to enjoy the benefits brought by digital finance in a safer environment,further improving the efficiency of social resource allocation.To promote the improvement of national happiness,we should continue to pay attention to the development of digital finance and actively promote the "long tail group" to enjoy the benefits created by digital finance.