The Impact Of Digital Inclusive Finance Development On The Consumption Difference Between Urban And Rural Residents

Based on the national conditions,China presents a special social structure-urban-rural dual structure,which leads to the separation of urban and rural development.The difference in consumption expenditure and the change in growth rate can directly reflect the difference in living standards of urban and rural residents.The current consumption situation in China is that there is a large difference between urban and rural areas.The consumption base in rural areas is small and the growth is slow,which is obviously contrary to the development goals of urban-rural integration and common prosperity in China.Clarify the mechanism of action is an area worthy of our exploration.The provision of inclusive finance is mainly aimed at vulnerable groups,including low and middle-income people,small and micro enterprises,the elderly and the disabled.The ultimate goal of inclusive finance is to achieve common prosperity of the whole society.In recent years,with the rapid development of digitalization,the promotion of inclusive finance has encountered a "bottleneck".We have deeply explored potential customers,released the potential power of rural residents’ consumption,and further narrowed the gap between urban and rural residents.First of all,in terms of theory,it explores the role of the impact approach,puts forward the research hypothesis of this paper based on the existing academic research results,and then provides empirical support for the hypothesis proposed above based on the empirical results.This paper finds that the consumption level of residents can be improved by reducing payment costs,easing liquidity constraints,and improving risk management capabilities.After systematically combing the existing academic achievements and analyzing and comparing the existing practical data,the current situation and development trend of the research content of this paper are obtained: it has gone through the embryonic stage,the traditional financial grid stage and the inclusive financial digital stage;The growth rate has been maintained in recent years,but the growth rate has slowed down in recent years.Whether the growth can be maintained in the future needs to observe the depth comparison between regions.By analyzing the changes of urban and rural residents’ consumption expenditure data,we can see that since 2011,inclusive finance has begun to show its effect;Engel’s coefficient also shows a downward trend,which shows that Chinese residents have basically solved the problem of food and clothing,and the consumption structure has shifted from basic consumption to enjoyment consumption.The empirical model used in this paper is the spatial econometric model;The explanatory variables of this empirical study are selected.The total index of digital inclusive finance is taken as the explanatory variable of the model,the education level is the regulating variable,and the control variable is the unemployment rate and the proportion of fiscal expenditure;The panel data of 31 provinces from 2011 to 2020 are selected as the basis of empirical research,and the original data is from the statistical yearbooks of each province.After the analysis of spatial effect,regulatory effect and heterogeneity,the following conclusions are drawn:(1)The development of digital inclusive finance plays a positive role in narrowing the consumption gap between urban and rural residents;(2)The improvement of education level can reduce the consumption difference between urban and rural residents,and plays a strengthening role in the process of reducing the consumption difference between urban and rural residents through the development of digital inclusive finance;(3)The positive role of digital inclusive finance in narrowing the consumption gap between urban and rural residents shows regional heterogeneity,especially in the western regions where the economy is relatively backward.Finally,combined with the results of empirical analysis,the paper puts forward corresponding policy recommendations to promote the coordinated development between urban and rural areas.This paper focuses on strengthening financial supervision and creating a good sustainable development environment for digital inclusive finance;Committed to improving residents’ education and financial literacy;The paper puts forward specific suggestions for policy improvement in three aspects:improving the construction of network facilities in rural areas and improving the efficiency of mobile payment.