Research On The Influence Of Digital Inclusive Finance On Household Consumption Upgrading

China’s economy is undergoing a transformation from a high-speed growth stage to a high-quality development stage,and at the same time,the investment and export of the "troika" can hardly meet the needs of economic and social transformation,so consumption has become the main driving force of economic growth.However,compared with developed countries,the consumption rate of Chinese residents is still low and the consumption structure is relatively backward.In order to achieve the strategic goal of high-quality economic development,it is urgent to expand domestic demand and promote the optimization of consumption structure at this stage.With the application of digital technology in the financial sector,digital inclusive finance has become an emerging growth point to promote the upgrading of residents’ consumption.With technologies such as big data and cloud computing,digital inclusive finance can provide more accurate and diversified financial products and services for different social groups,such as digital payment,digital credit and Internet finance.Therefore,this paper studies the impact of digital inclusive finance on China’s consumer upgrading,which is important for how to expand domestic demand and successfully achieve high-quality economic development.This paper first reviews the previous research results and analyzes the development history and current situation of digital inclusive finance and resident consumption upgrading by combining with realistic data.Secondly,it defines the basic concepts,summarizes the basic theories of digital inclusive finance,consumption level and consumption structure,and then carries out theoretical analysis on the ways in which digital inclusive finance affects residents’ consumption upgrading and puts forward the research hypothesis of this paper.In the empirical analysis part,this paper matches the CFPS household database with the Digital Inclusive Finance Index of Peking University to test the research hypotheses,firstly constructs a two-way fixed effects model with balanced panel data for benchmark regression analysis,and on this basis investigates the nonlinearity of the impact of digital inclusive finance on residents’ consumption upgrading through the threshold effect model,further verifies the impact mechanisms proposed in the theoretical analysis respectively.Finally,heterogeneity analysis is conducted from urban-rural,regional,income,and education perspectives.The conclusions of this paper are as follows:(1)The development of digital inclusive finance promotes household consumption upgrading by improving consumption level and optimizing consumption structure.(2)The promotion effect of digital inclusive finance on consumption upgrading is non-linear,and there is a single-threshold effect on its impact on consumption level,and the promotion effect on consumption level weakens when the digital inclusive finance index exceeds the threshold;while there is a double-threshold effect on its impact on consumption structure,and the optimization effect on consumption structure is enhanced when the digital inclusive finance level exceeds the first threshold,and the promotion effect significantly When the level of digital inclusive finance exceeds the first threshold,its effect on the optimization of consumption structure increases,and when the second threshold is exceeded,the promotion effect significantly decreases.(3)Digital inclusive finance can promote the improvement of consumption level and structure optimization by alleviating the liquidity constraint of households and providing them with a more convenient payment environment,and increase the level of household consumption expenditure by promoting the diversification of household income sources.(4)Digital inclusive finance has a stronger role in promoting consumption upgrading for rural,mid-western,and low-income households,while it has a stronger role in raising the consumption level of middle-skilled and high-skilled households and optimizing the consumption structure of low-skilled households.Based on the above findings,this paper proposes the following policy recommendations: strengthen the construction and promotion of digital inclusive finance among rural,mid-western and low-income residents to narrow the consumption gap between groups and promote balanced economic development;enhance the allocation of resources to regions that do not cross the threshold of digital inclusive finance development to improve resource allocation efficiency;cultivate digital technology composite talents and establish a sound digital inclusive finance-related risk prevention mechanism.