Research On The Impact Of Digital Inclusive Finance On China’s Consumer Propensity

In recent years,as the role of investment and exports in driving China’s economic development has gradually weakened,consumption has become the main source of power to promote China’s economic development.Compared with developed countries,the consumption potential of China’s residents still needs to be further released.Therefore,whether from the perspective of improving residents’ living standards or promoting steady economic growth,it is important to improve residents’ consumption level.At present,relying on policy support and digital infrastructure construction,the level of development of digital inclusive finance is rapidly increasing,which has enabled financial services to benefit more and more groups and widen the depth of use,bringing new consumption methods and services to residents.Consumption propensity can reflect the basic characteristics of consumers’ consumption behavior,reflect their consumption preferences,and reflect the degree of unleashing consumption potential,which is an important perspective for studying consumption behavior.Research on the relationship between digital inclusive finance and residents’ propensity to consume is of far-reaching significance in forming a long-term mechanism for raising residents’ consumption levels,improving their living standards and promoting the sound development of China’s economy.In this paper,when combing through the relevant literature and theories,we find that digital inclusive finance may have an impact on the propensity to consume in China through three channels: credit,insurance,and convenient payment.Further analysis based on the development of both finds that: along with the booming development of digital inclusive finance,the macro consumption propensity based on national economic accounting shows an upward trend,while the micro residential consumption propensity,although showing a downward trend,has slowed down and shows a certain correlation with the lagged period of digital inclusive finance.Finally,based on the digital inclusive finance index published by the Digital Finance Research Center of Peking University from 2011-2019 and related data from 31 provincial administrative units across China,a two-way fixed-effects model is used to conduct an empirical analysis at the overall national level,heterogeneous impact,and impact mechanism to test whether the development of digital inclusive finance positively affects residents’ propensity to consume.The results show that digital inclusive finance can significantly increase residents’ propensity to consume,especially in survival-oriented aspects such as food.In addition,the heterogeneity results show that digital inclusive finance development has a significant effect on the propensity to consume of residents in regions with medium to high levels of economic development.However,in regions with lower levels of economic development,digital inclusive finance does not have a significant effect on enhancing residents’ propensity to consume,probably due to problems such as the digital divide,where digital inclusive finance cannot better exert the long-tail effect.Further,the mechanism test finds that convenient payment is the main way for digital inclusive finance to promote the increase of residents’ propensity to consume,and the credit route is not significant.Finally,based on the empirical results,targeted suggestions are made to improve the digital inclusive financial products and services system,improve the digital infrastructure of digital inclusive finance,and strengthen the supervision of digital inclusive finance,so as to provide residents with a better environment for using digital inclusive finance;suggestions are made to strengthen the promotion of digital inclusive finance,so as to promote the continuous sinking of digital inclusive financial services,so as to better play the positive role of digital inclusive finance on residents’ consumption tendency and boost economic growth.