Research On The Impact Of Digital Finance On The Upgrading Of Consumption Structure

The era of digitization and intelligence has come.Finance,as the core of economic operation,has effectively promoted the development of China’s digital finance in the process of integration with digital technology,and creatively brought great changes to China’s financial market.The development of digital finance has undoubtedly brought convenience in capital circulation to all walks of life and greatly promoted the speed of currency circulation.In view of China’s low consumption and unsatisfactory consumption rate at the present stage,coupled with the gradual rise of trade protectionism and the global impact of the COVID-19,China is facing the dilemma of increasing uncertainty at home and abroad.Therefore,a comprehensive analysis of the research on China’s consumption and the financial role behind the upgrading of consumption structure has important strategic value and significance.Based on the existing research results at home and abroad,this paper studies the impact of the development of digital Finance on the upgrading of residents’ consumption structure from both theoretical and empirical aspects.Firstly,it expounds the related concepts and theoretical basis of digital finance and consumption structure upgrading.Secondly,it combs the development status of China’s digital finance and consumption structure upgrading,analyzes the impact mechanism of digital Finance on consumption structure upgrading,and puts forward the research hypothesis of this paper.Finally,it makes an empirical study on the impact of digital Finance on the upgrading of consumption structure.Using the digital finance index released by the digital finance center of Peking University from 2011 to 2018 and the panel data of 30 provinces in China,this paper takes digital finance as the explanatory variable,consumption structure upgrading as the explained variable,and new urbanization as the intermediary variable,selects a series of control variables,uses the fixed effect model and intermediary effect model to explore the effect of digital Finance on consumption structure upgrading,and carries out heterogeneity analysis and robustness test.Through the research,it is found that digital finance is conducive to the upgrading of consumption structure,and this conclusion has good robustness,and the following conclusions are drawn:(1)digital finance not only directly promotes the upgrading of consumption structure through its own technical advantages,but also indirectly promotes the upgrading of consumption structure by affecting the process of new urbanization,that is,there is the so-called intermediary effect.(2)On the whole,the digital financial index has a significant positive role in promoting the upgrading of consumption structure,but the promotion intensity at the level of secondary indicators is different,in which the promotion effect of coverage and use depth is more obvious than that of digitization.(3)The effect of digital Finance on the upgrading of residents’ consumption structure in the western region is more significant,and its significance is higher than that in the central region.