Study On The Impact Of Digital Inclusive Finance On Residents’ Consumption Level In Shanxi Province

In recent years,the external uncertainty of China’s economic development has gradually increased,and the impact of the previous New Crown epidemic,which has affected the original economic development model relying on the dual-driven export and investment.In the face of this situation,the country has proposed a new economic development pattern of "double circulation" and implemented the strategy of expanding domestic demand.The requirement of realizing the new pattern is to stimulate consumption and promote the improvement of residents ’ consumption level.Finance,as an important part of the development of modern economic activities,and digital inclusive finance as a new means of financial services at present,has the role of increasing financial accessibility and reducing financial exclusion,and is closely linked to the increase in the level of consumption of the population.As a major coal province in China,Shanxi Province is mainly mountainous in geographic situation.The differences in geographical conditions and the persistent problem of dualistic urban-rural economic structure,which makes the distribution of financial resources also different between urban and rural areas,with fewer financial outlets and less financial services available in rural and geographically disadvantaged areas,making it difficult for residents to improve their consumption levels.Accordingly,through the inclusiveness of digital inclusive finance,the availability of financial services can be improved,which is of great significance to reduce the number of financial exclusion groups in Shanxi Province and improve the consumption level of residents.This paper combs through the relevant literature,synthesizes pertinent theories and examines the mechanism of digital inclusive finance affects residents’ consumption level,and then analyzes the current situation of digital inclusive finance and residents’ consumption in Shanxi Province and puts forward relevant hypotheses.Then empirically analyze the impact of digital inclusive finance on residents’ consumption levels in Shanxi Province through a fixed-effects model using the 2013-2021 Peking University Digital Inclusive Finance Index and panel data from 11 prefecture-level cities in Shanxi Province.In addition,urban-rural and regional heterogeneity and regional heterogeneity analyses were done considering urban-rural and regional differences,and sub-dimensional regressions were also done for urban-rural heterogeneity.The results show that: first,the development of digital inclusive finance in Shanxi Province has a promoting effect on on the consumption level of residents in both general and sub-dimensions;second,there is urban-rural heterogeneity in the impact of digital inclusive finance development on residents’ consumption levels in Shanxi Province,and the impact is more significant in rural areas than in urban areas,and this impact is mainly reflected by the breadth of coverage and the degree of digitalization;third,there is regional heterogeneity in the impact of digital inclusive finance development on residents’ consumption levels in Shanxi Province,and the impact is most significant in Jinzhong and least in Jinnan.Finally,based on the empirical findings,this paper makes some suggestions on strengthen the construction of digital infrastructure,improve residents’ own financial literacy,strengthen the innovation of digital inclusive financial products and services,improve residents’ disposable income and strengthen the supervision of digital inclusive finance,so as to better support the healthy growtht of digital inclusive finance in Shanxi Province and bring into play its role in promoting residents’ consumption level.