Research On The Impact Of Financial Agglomeration On Rural Residents’ Consumption Upgrading

After the outbreak of the COVID-19,the international market economy was depressed,and the import and export business was seriously hindered.China’s model of relying on exports to drive economic growth was unsustainable.China’s domestic consumption market is huge,and the per capita consumption rate is generally not high.There is a huge consumption potential that can be tapped into a new growth power.It is difficult to tap the consumption potential in rural areas,and the domestic product supply can not meet the consumption upgrading demand of residents,resulting in the consumption outflow,which makes China have a long way to go to transform the economic driving force.When excavating the consumption potential of rural residents,we should not only pay attention to the scale of rural residents’ consumption,but also guide the quality of the overall goods consumed by rural residents and realize the consumption upgrading of rural residents.Only in this way can we maximize the consumption potential of rural residents,improve the living standards of rural residents,narrow the gap between urban and rural areas and better contribute to the realization of common prosperity.Previous scholars have verified that finance plays an important role in residents’ consumption.Especially in recent years,the rapid development of Inclusive Finance has made financial resources benefit more rural residents and regions.As the financial market begins to sink,financial resources flow from cities to rural areas,and continue to gather geographically.Its scale effect,information spillover effect and bank competition effect continue to appear.The phenomenon of financial agglomeration is becoming more and more prominent,and the literature on the role of financial development from the perspective of the spatial characteristics of financial industry is relatively few and has not been deeply discussed.Therefore,this paper puts financial agglomeration and consumption upgrading in the same theoretical framework to study how financial agglomeration affects rural residents’ consumption upgrading.Firstly,this paper combs the related concepts and theories of financial agglomeration and residents’ consumption,and finds out the path of financial agglomeration affecting rural residents’ consumption upgrading.Then,based on the measurement of financial agglomeration and rural residents’ consumption upgrading,an empirical model is constructed by using the inter provincial panel data from 2002 to 2019 to test the impact of financial agglomeration on rural residents’ consumption upgrading,as well as its heterogeneity and spatial effect.Through empirical analysis,this paper draws conclusions: first,financial agglomeration can significantly promote the consumption upgrading of rural residents;Second,the three kinds of intermediary effect mechanisms have significant direct effect and intermediary effect,and the intermediary effect of income growth mechanism is the most obvious;Third,financial agglomeration plays a more significant role in promoting the consumption upgrading of low consumption groups than high consumption groups.At the same time,it plays a more significant role in promoting the consumption upgrading of rural residents in the middle and northeast of China’s four major regions,and the estimation coefficient is also greater,but it has no obvious impact on regions with very poor consumption base;Fourth,financial agglomeration has obvious spatial spillover effect,which can significantly promote the consumption upgrading of rural residents in the surrounding areas.Finally,according to the specific characteristics of China’s rural residents’ consumption structure and the conclusions of empirical research,this paper puts forward four suggestions to improve the financial institution system,deepen the reform of financial system,promote the upgrading of industrial structure and effectively increase residents’ income,so as to build a good consumption environment and guide the consumption upgrading of rural residents.