The Impact Of Digital Inclusive Financial Development On Rural Residents’ Consumption

In recent years,China’s economy has been undergoing a shift towards high-quality development,with consumption becoming an important driver of this shift.Along with the continuous optimisation of China’s economic structure,the contribution of consumption levels to the economy is also increasing.In recent years,under the impact of the new crown epidemic.China’s consumption levels have tended to decline to some extent.According to statistics,the contribution of China’s final consumption expenditure to economic growth will be32.8% in 2022.In the uncertainty of future income,the willingness of our residents to consume is also declining,with the total retail sales of consumer goods in China falling by 0.2 percentage points in 2022.Good financial trends are a great boost to economic growth,which in turn boosts consumption levels,and digital inclusive finance can further enhance rural residents’ consumption levels by providing them with more convenient and diversified financial services.As one of the four municipalities directly under the central government,Chongqing has a large consumption gap between urban and rural residents,and the phenomenon of insufficient domestic demand among rural residents is widespread throughout the city,and the consumption structure in rural areas needs to be further optimised and upgraded.This thesis examines the impact of digital inclusive finance on the consumption structure of rural residents in Chongqing,and explains the role of digital inclusive finance in improving the consumption capacity and optimising the consumption structure of rural residents in the region.By reducing the cost and improving the quality of financial services,digital inclusive finance has effectively met the financial needs of rural residents in production and daily life,and promoted the upgrading of consumption and structural transformation of rural residents.Based on both theoretical and empirical evidence,this thesis investigates the impact of digital inclusive finance on residents’ consumption in rural areas of Chongqing.First,it defines the concepts related to digital inclusive finance and summarises the relevant financial theories.The history of the development of digital inclusive finance in Chongqing,the current consumption situation of rural residents,and the correlation between the development of digital inclusive finance and different types of consumption expenditure of rural residents in Chongqing are further elaborated.Secondly,the total digital inclusive finance index of Peking University from 2018 to 2021,as well as other sub-indicators and secondary indicators,are selected as research data indicators,aiming to analyse the transformation and upgrading of digital inclusive finance development on the consumption patterns of rural residents.Therefore,the development of digital inclusive finance should be given attention and the support and implementation of relevant policies should be strengthened in order to further promote the consumption level of rural residents.The findings of the study are as follows:(1)from an overall perspective,the development of digital inclusive finance will,to a certain extent,promote the upgrading of the consumption structure of rural residents in Chongqing.(2)in terms of regional heterogeneity,the vigorous development of digital inclusive finance in Chongqing will have a more significant effect on improving the consumption structure of residents in rural areas with better economic conditions,and a lower effect on regions with poorer economies.(3)in terms of structural heterogeneity,the breadth of coverage of digital inclusive finance continues to expand,and rural residents’ subsistence-oriented consumption strengthens,driving up consumption levels.The depth of use and the degree of digitization have a catalytic effect on rural residents’ enjoyment-oriented consumption,and the consumption structure has been improved.(4)in terms of the impact of digital inclusive finance on rural residents’ consumption structure,it shows that payment,investment,insurance and credit all significantly contribute to the upgrading of Chongqing rural residents’ consumption structure,and the extent of the role of investment is the deepest.Finally,on the basis of the findings of the previous empirical study,some suggestions are made on how digital inclusive finance can better serve the improvement of rural residents’ consumption structure in the light of the situation in Chongqing.