A Study On The Influence Of Digital Finance To Reduce Precautionary Savings Of Rural Residents

At present,the comprehensive application of Internet technology in many aspects is conducive to the progress of the digital economy.As an important part of the national economy,the digital economy is playing an increasingly important role in driving economic growth.This paper attempts to provide a diversified perspective for the consumption promotion mechanism of digital Finance on the basis of reducing the precautionary savings of rural residents by digital finance.This paper systematically describes the current situation of provincial panel farmers’precautionary savings,analyzes how digital finance reduces their precautionary savings,and preliminarily summarizes and discusses the specific mechanism of each influencing factor.Then,a multivariate order model is established to regress the survey data,empirically test and analyze the impact mechanism of relevant factors on rural residents’ Preventive Savings.Starting from the research framework of Preventive Savings,combined with the relevant theories of Preventive Savings,this paper reveals the problems of consumption lag and insufficient demand in rural areas in China through the analysis of the preventive savings tendency of rural residents under the provincial panel.The results show that rural residents still have strong precautionary saving motivation.With the continuous development of digital finance,the precautionary saving motivation of rural residents is gradually decreasing.Further,through the construction of the intermediary effect model,the mechanism of digital finance affecting precautionary savings is studied.The results show that the development of digital finance improves the consumption growth of rural residents by reducing uncertainty,and then reduces the precautionary savings of residents.It is worth mentioning that this paper finds that after more than ten years of state support to the west,the motivation intensity of rural residents in Western China for precautionary savings has declined to a certain extent.The development of digital finance has also had a greater impact on the precautionary savings of rural residents in the western region.