Research On The Impact Of Digital Financial Inclusion On Residents’ Consumption

Currently,our country’s exports and investment are experiencing bottlenecks,and consumption has become the largest power for our country’s economic growth.In the face of the changeable and complex economic environment at home and abroad,we must adhere to the strategic basis of expanding domestic demand and promote the high-quality development of our country’s economy.The advancement of technology has further expanded the reach of financial services.Digital technology can break through the limitations of physical outlets and help financial institutions extend the reach of financial products and services to vulnerable groups who are originally on the edge of financial services.Studying the impact of the development of digital financial inclusion on the consumption of Chinese residents has important theoretical and practical significance for promoting residents’ consumption and realizing long-term stable economic growth in our country.On the basis of the existing research results,this article conducts a theoretical analysis and empirical test on the impact of digital financial inclusion on household consumption from a micro perspective.In the theoretical analysis part,including the concept and characteristics of digital financial inclusion,introduces the theoretical model of consumption under certainty and uncertainty,and proposes the mechanism of digital financial inclusion on household consumption.In the empirical test part,empirical research is carried out on the hypotheses put forward in the theoretical part,using the data from The Peking University Digital Financial Inclusion Index of China and China Family Panel Studies,and the fixed effects model is used for regression.The research results show that:(1)Digital financial inclusion has significantly promoted the growth of household consumption in our country.In addition to the digital financial inclusion aggregate index,the coverage and depth of use indicators have significantly promoted household consumption;(2)The data sample is replaced with provincial panel data and the estimation result using the two-stage least square method shows that the conclusion is relatively robust;(3)In terms of impact mechanism,both mechanisms to ease household mobility constraints and facilitate payment have significantly promoted household consumption;(4)From the regression results of sub-samples,digital financial inclusion is more significant for rural families,low-income families,and families that are not deeply influenced by Confucian culture.Finally,based on the research conclusions,This article propose that financial institutions should focus on strengthening financial support for P-HtM and P-nHtM families,strengthen the construction of digital inclusive financial infrastructure,appropriately promote industrial and commercial culture,and strengthen the protection of financial consumer rights.