Research on the Impact of Digital Inclusive Finance on Residents' Consumption Upgrading
DOI:
https://doi.org/10.54691/3cnjtv03Keywords:
Digital financial inclusion, Consumer spending upgrading, Labor and employment, Liquidity constraints.Abstract
During China's economic transition, consumption has become the main growth driver. Based on data from 281 cities in China from 2011 to 2020, this paper explores the impact of digital inclusive finance on residents' consumption upgrading and its mechanism using a fixed-effects model. The results show that (1) digital inclusive finance significantly promotes residents' consumption, especially in terms of breadth of coverage, depth of use, and degree of digitization. (2) In the heterogeneity analysis, region, city size, and urban-rural differences show heterogeneity in the impact of digital inclusive finance on consumption upgrading, with eastern, rural, and densely populated areas benefiting more. (3) Mechanism analysis reveals that digital inclusive finance promotes consumption growth by raising income and financial development levels and easing liquidity constraints. The findings of this paper provide a basis for the formulation of digital inclusive finance policies to promote consumption upgrading.
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