Research On The Impact Of Internet Finance Development On Residents’ Consumption

Internet finance is an emerging industry with a very rapid development momentum since the 21 st century.All countries seize the hot spot of Internet finance to vigorously develop their own economies.Since 2013,China’s Internet finance has developed very rapidly and has become the world leader.So far,Internet finance has been inseparable from people’s life.Its main development models include third-party payment,P2 P network loan,network crowdfunding,Internet monetary fund,etc.Each model has its own unique features and has a profound impact on our daily life.In the early days,China’s consumption demand was always insufficient.In order to improve this phenomenon,China decided to vigorously stimulate consumption and promote economic development with consumption.So far,China’s resident consumption has become the first driving force of economic development,but the proportion of resident consumption in GDP still lags behind that of developed countries,which shows that China’s consumption potential has not been fully released and needs to be further explored.In this context,the study of the impact of Internet finance on residents’ consumption will help to find new ways to stimulate consumption,which is of great significance to tap consumption potential,so as to achieve the purpose of stimulating economic growth.This paper first introduces the background,significance and methods of the research,and makes basic preparations for the follow-up research by summarizing and combing the previous research.After that,the theoretical framework of this paper is combed according to the existing theories,which is used as the theoretical basis for empirical research.Finally,this paper expounds the current situation of consumption level and consumption structure development,and then analyzes the impact mechanism of Internet finance development on residents’ consumption level and consumption structure,puts forward four hypotheses and conducts empirical analysis,draws conclusions and puts forward relevant policy recommendations.In the empirical analysis part,according to the availability of data and the comprehensiveness of the research,this paper selects the indicators of 25 provinces and cities in China from 2013 to 2020 to form panel data.The development level of Internet finance is used as the explanatory variable,the consumption level of residents is used as the explanatory variable,and the control variables are income,per capita financial expenditure,and education level.A fixed effect model is established to study the impact of the development of Internet finance on the consumption level of residents.Meanwhile,due to the huge land area and imbalanced regional development in China,this article divides the eastern,central,and western regions based on the previous research,and establishes a fixed effects panel regression model to explore whether the impact of internet finance development on residents’ consumption levels has regional differences.Then,based on time series data from 25 provinces and cities from 2013 to 2020,this article uses the level of internet finance development as the explanatory variable,resident consumption structure as the dependent variable,and income,per capita fiscal expenditure,and price level as the control variables to establish a panel regression model to study the impact of internet finance development on resident consumption structure.Finally,regional division and panel regression were also conducted to explore whether the impact of internet finance development on residents’ consumption structure also has regional differences.After empirical analysis of the impact of Internet finance on the consumption level and structure of residents,this paper draws the following conclusions: First,the development of Internet finance has indeed promoted the improvement of residents’ consumption level,and has a significant positive impact on the improvement of residents’ consumption level;Second,the impact of the development of Internet finance on the consumption level of residents is indeed different.The development of Internet finance has a significant positive impact on the consumption level of residents in the eastern and western regions,while the impact on the consumption level of residents in the central region is not significant;Third,the study found that the development of Internet finance also has a positive impact on the consumption structure of residents;Fourth,the impact of the development of Internet finance on the consumption structure of residents has regional differences.It has a significant promoting effect on the consumption structure of the western region,but has no obvious impact on the eastern and central regions.On the basis of empirical analysis,this article proposes corresponding policy recommendations,hoping to be helpful for the development and consumption improvement of the internet finance industry.Finally,due to factors such as data availability and the pandemic,this article can only select data from 2013 to 2020,with a relatively short time span and a certain impact on timeliness.At the same time,there has been controversy over the selection of indicators for the development of internet finance,and there are also certain shortcomings in this article’s indicators.I hope that future research can continue to improve and deepen.