Study on the impact of digital finance on consumption structure

Authors

  • Liangrui Yao

DOI:

https://doi.org/10.54691/bcpbm.v50i.5617

Keywords:

digital finance; residents' consumption; consumption structure.

Abstract

Consumption level is the lasting driving force of economic growth. This paper combines China Digital financial Inclusion Index with relevant data in China Statistical Yearbook, establishes an empirical model, and studies the impact of digital financial inclusion on subsistence consumption, development consumption, enjoyment consumption and total consumption. The results show that: (1) the development of digital finance can promote the improvement of residents' consumption level, among which the promotion effect on developmental consumption is the most significant. This conclusion is still valid after considering the endogenous problem; (2) In terms of heterogeneity analysis, among the three sub-indexes of digital finance coverage, depth of use and degree of digitalization, the coverage of digital finance has the most obvious promoting effect on residents' consumption, while the development of depth of use and degree of digitalization has no significant impact on residents' consumption; (3) In terms of the mechanism of action, digital finance mainly promotes residents' consumption by narrowing the digital divide. Finally, this paper makes use of the research conclusions to put forward relevant policy suggestions on how to better use digital finance to promote consumption level and stimulate economic growth.

Downloads

Download data is not yet available.

References

Wang Xiaohua, Ma Xiaoke, He Qian. Has the use of digital Finance Promoted the Full Release of Rural consumption?. China Rural Economy. 2022. No. 11, p. 21-39.

Li Yanlong, Shen Yan. Digital Financial Inclusion and Regional economic Imbalance. Economics Quarterly. Vol. 22 (2022) No. 5, p. 1805-1828.

Brito,D.L. and Hartley, P.R. Consumer Rationality and Credit Cards. Journal of Political Economy. Vol.103(2), p. 400-433. DOI: https://doi.org/10.1086/261988

Yi Xingjian, Zhou Li. Whether the development of digital inclusive finance significantly affects household consumption —— Micro evidence from Chinese households. Finance Research. 2018. No. 11, p. 47-67.

Zhang Xun, Yang Tong, Wang Chen, et al. The development of Digital finance and Household consumption Growth: Theory and Practice in China. Management World. Vol. 36(2020) No. 11, p. 48-63.

Kodan A.S., Chhikara K.S. A Theoretical and Quantitative Analysis of Financial Inclusion and Economic Growth. Management and Labour Studies. 38(1-2), p. 103-133. DOI: https://doi.org/10.1177/0258042X13498009

Li Tao, Xu Xiang, Sun Shuo. Inclusive Finance and Economic Growth. Financial Research. 2016. No. 4, p. 1-16.

Qian Haizhang, Tao Yunqing, Cao Songwei, et al. Theory and Demonstration of China's Digital Finance Development and economic Growth. Journal of Quantitative and Technical Economics. Vol. 37 (2020) No. 6, p. 26-46.

Hu Debao, Zhai Chenzhe, Zhao Sibo. Does digital finance promote household consumption upgrading? An analysis based on data from the China family panel studies. Economic Modelling. 125. DOI: https://doi.org/10.1016/j.econmod.2023.106377

Sun Yuhuan, Zhang Tingyu, Wang Xuene, et al. The current situation, Problems and Prospects of the development of Digital Inclusive Finance in China. Journal of Quantitative and Technical Economics. Vol. 38(2021) No. 2, p. 43-59.

Yin Zhichao, Guo Peiyao. Assessing the Effect of Targeted poverty alleviation policies —— An Empirical Study from the perspective of Household Consumption. Management World. Vol. 37(2021) No. 4, p. 64-83.

Wang Y. Empirical Research of Poverty Alleviation Effects of Digital Inclusive Finance from the Perspective of Internet-Based on 2011-2015 Provincial Panel Data. DEStech Transactions on Economics, Business and Management.

Mushtaq R., Bruneau C. Microfinance, Financial Inclusion and ICT: Implications for Poverty and Inequality. Technology in society. 59, p. 101-154. DOI: https://doi.org/10.1016/j.techsoc.2019.101154

Zhang Xun, Wan Guanghua, Zhang Jiajia, et al. Digital Economy, Inclusive Finance and Inclusive Growth. Economic Research. Vol. 54(2019) No. 8, p. 71-86.

He Jing, Li Qinghai. Use of digital finance and farmers' of farmers. Chinese Rural Economy. 2019. No. 1, p. 112-126.

Zhao Yaxiong, Wang Xiuhua. Digital Finance, Household Relative Income and Vulnerability —— A Discussion on the impact of the Multi-dimensional 'Divide'. Finance Research. 2022. No. 10, p. 77-97.

Beck T., Pamuk H., Ramrattan R., et al. Payment Instruments,Finance and Development. Journal of Development Economics. 133 p. 162-186. DOI: https://doi.org/10.1016/j.jdeveco.2018.01.005

Xie Huali, Shen Yan, Zhang Haoxing, et al. Can digital Finance Promote entrepreneurship? ——Evidence from China. Economics (Quarterly Journal). Vol. 17(2018) No. 4, p. 1557-1580.

Tian Ge, Huang Hai, Zhang Xun. Digital Finance and high-quality development of entrepreneurship: Evidence from China. Finance Research. 2023. No. 3, p. 74-92.

Chen Gang. How Finance Promotes Entrepreneurship: Scale Expansion or Diversity of Subjects. Research in Financial Economics. Vol. 30 (2015) No. 5, p. 29-42.

Yang Jia, Lu Yao, Li Jizhen, et al. The impact of Inclusive Finance on Entrepreneurship in the Digital Age: Evidence from a Microsurvey of Chinese Households. Journal of Management Science. Vol. 25(2022) No. 11, p. 43-68.

Qiu Zeqi, Zhang Shuqin, Liu Shding, et al. From Digital Divide to Dividend Difference —— The Perspective of Internet Capital. Chinese Social Sciences. 2016. No. 10, p. 93-115+203-204.

Cheng Mingwang, Zhang Jiaping. Internet popularization and income gap between urban and rural areas: theory and demonstration. China Rural Economy. 2019. No. 2, p. 19-41.

Zhang Xun, Wan Guanghua, Wu Haitao. Narrowing the Digital Divide: The Development of Digital Finance with Chinese Characteristics. Social Sciences in China. Vol. 2021. No. 8, p. 35-51+204-205.

Wang Zuogong, Li Huiyang, Sun Lulu. The Development and governance of Digital Finance: From Information Asymmetry to Data Asymmetry. Financial Theory and Practice. 2019. No. 12, p. 25-30.

Xie Ping, Zou Chuanwei, Liu Haier. The Basic Theory of Internet Finance. Financial Research. 2015. No. 8, p. 1-12. DOI: https://doi.org/10.4324/9781315637921

Downloads

Published

2023-09-22

How to Cite

Yao, L. (2023). Study on the impact of digital finance on consumption structure. BCP Business & Management, 50, 292-305. https://doi.org/10.54691/bcpbm.v50i.5617