The Impact Of The Development Of Digital Financial Inclusion On Household Consumption

At present,our country is in a new development pattern with domestic major cycle as the main body and domestic and international cycle.The dweller consumption level keeps growing and becomes the important pillar of our economic development day by day.However,China’s consumption rate is still relatively low,far lower than that of developed European and American countries such as Britain and Germany,as well as its Asian neighbors such as Japan and South Korea.This indicates our country residents consumption demand still has great potential for development.To promote the growth of household consumption,on the one hand,the total economic growth effect;On the other hand,it can promote the high quality development of economy.In recent years,digital inclusive finance has developed rapidly in China.Due to its unique convenience and availability,it has significantly reduced the cost of financial services for residents and eased its liquidity constraints.The development of digital inclusive finance has increased household income,stimulated consumer demand,and raised the consumption level and level of urban and rural households,becoming a new support point to promote the growth of household consumption.Therefore,this paper studies the impact of the development of digital inclusive finance on household consumption.On this basis,explore the mechanism of digital inclusive finance to promote household consumption.First of all,this paper reviews the existing domestic and foreign research theories and achievements related to digital inclusive finance and consumption,analyzes the development status of digital inclusive finance and household consumption in recent years,and discusses the path that digital inclusive finance may affect the growth of household consumption.Secondly,based on the Chinese household finance survey database,this paper matches the Peking University Digital Financial Inclusion Index of the corresponding region,and supplements the data of the China Statistical Yearbook to form the data basis.This paper uses ols model and logit model to empirically analyze the impact of digital financial inclusion on household consumption.Instrumental variable method was used to alleviate potential endogenous problems.By replacing explanatory variables,explained variables and database,the robustness test was carried out to prove the reliability of the conclusion.Thirdly,this paper explores the impact mechanism of digital financial inclusion on household consumption,and innovatively combines the logit model and machine learning algorithm to verify it,and has a clear understanding of the transmission mechanism.Finally,this paper draws the following conclusions: 1)The development of digital inclusive finance has improved the level of household consumption;2)Digital inclusive finance can improve household consumption by easing household liquidity constraints,improving household asset income,promoting household participation in entrepreneurship,improving the convenience of payment and promoting household participation in online shopping.3)According to the division of urban and rural households,digital inclusive finance plays a stronger role in improving consumption among urban households;According to consumption types,digital inclusive finance has a stronger effect on entertainment consumption.The possible innovative and academic contributions of this paper are as follows: first,this paper discusses the main influence path and mechanism of digital inclusive finance on household consumption,and improves the research in this field through empirical analysis and theoretical reasoning.Secondly,in terms of research methods,it tries to combine machine learning algorithm with traditional econometrics model,so as to explore the combination of machine learning algorithm and econometrics to a certain extent.Third,it adopts the latest district and county data of China Household Finance Survey,which is more in line with the economic environment of family units,and further analyzes the impact of digital inclusive finance on family consumption from individual and family characteristics.Promoting the better development of digital financial inclusion is of great significance to increasing household consumption.This paper proposes: 1)to further accelerate the construction of digital infrastructure,tamping the hardware foundation of digital financial development;2)Continue to optimize products related to digital inclusive finance and steadily promote the improvement of services;3)Strengthen the popularization of financial knowledge;4)Continue to promote the formulation and subsequent revision and supplement of relevant laws and regulations on digital financial inclusion;5)Build a sound regulatory system.So that every Chinese citizen can enjoy the digital inclusive finance life convenience,economic benefits the people,the wisdom of the financial services.It has profound significance in promoting the long-term stable development of our economy,the transformation of economic structure and the improvement of residents’ quality of life.