Research On The Impact Of Digital Inclusive Finance On Rural Residents’ Consumption Upgrade

The upgrading of residents’ consumption is an inevitable result of China’s economic development and an inevitable trend under the upgrading of domestic industries.As a group that cannot be ignored in China’s domestic market,the study of consumption upgrading of rural residents caters to the need to release the consumption potential of the rural market and smooth the domestic circulation.With the development of digital technology in recent years,Digital Financial Inclusion has become the mainstream mode of Financial Inclusion,and its extension of rich application scenarios has broadened the coverage breadth and usage depth of inclusive finance,which has a subtle impact on national economic decision-making.The development of Digital Financial Inclusion caters to the urgent need of rural residents to upgrade their own consumption,and the upgrade of rural residents’ consumption also expands the functional boundaries and application scenarios of digital inclusive finance,therefore,the study of the impact of digital inclusive finance on rural residents’ consumption upgrade is in line with objective logic and subjective demands.After fully drawing on the theoretical foundation and existing research results related to inclusive finance and residents’ consumption,this paper firstly analyzes the current situation of the development of Digital Financial Inclusion and rural residents’ consumption upgrading,and conducts in-depth excavation on Digital Financial Inclusion business functions and rural residents’ consumption upgrading demands;secondly,based on the analysis of the current situation,this paper conducts a theoretical analysis of the role of Digital Financial Inclusion in upgrading consumption of rural residents,including the study of its theoretical foundation and the discussion of the mechanism of action,and forms the mechanism of action of“supply-side-action path-demand-side” with constraints;thirdly,this paper selects The Peking University Digital Financial Inclusion Index of China(PKU-DFIIC)and consumption data of rural residents in 31 provinces,cities and autonomous regions in China from 2011 to 2020.The empirical results show that:(1)in terms of impact effect,Digital Financial Inclusion has a positive impact on promoting rural residents’ consumption upgrade,which is manifested in expanding the scale of rural residents’ consumption horizontally and promoting rural residents’ consumption upgrade vertically,and the breadth of coverage is the most effective in promoting rural residents’ consumption upgrade among different dimensions,and the effect is most obvious in Northeast China among different regions;(2)in terms of impact path,the direct path of Digital Financial Inclusion impacting rural residents’ consumption upgrade is the most obvious.In terms of influence paths,in the direct path of Digital Financial Inclusion affecting rural residents’ consumption upgrade,payment business and insurance business play a positive role,and in the indirect path,rural residents’ disposable income plays a significant mediating effect,but compared with rural residents’ disposable income increasing the total consumption of rural residents,Digital Financial Inclusion can inject lasting momentum into rural residents’ consumption upgrade;(3)In terms of influence degree,Digital Financial Inclusion has a promoting effect on the consumption upgrade of rural residents,but the absolute value of the influence coefficient is small.Combined with the empirical results,it can be seen that increasing the coverage of digital inclusive finance and developing payment business and insurance business can effectively improve this promoting effect.It is believed that the promotion of rural residents’ consumption upgrade by Digital Financial Inclusion needs to go through the process of “inclusive” and then“beneficial”.Finally,combining the mechanism of action and the empirical results,this paper draws policy inspirations and argues that in the process of promoting rural residents’ consumption upgrading with Digital Financial Inclusion,the relationship between “universal” and “beneficial”,“digital” and “financial”,“Digital Financial Inclusion” and “rural residents’ consumption upgrade” should be handled well,and thus put forward three policy inspirations.These are: strengthen the policy financial support for agriculture to expand the coverage of Digital Financial Inclusion;strengthen the technical application capability of financial institutions to enhance the supply of digital inclusive finance in rural areas;and improve the information construction in rural areas to optimize the environment for the development of Digital Financial Inclusion.