Research on the Impact of China's Digital Inclusive Finance Development on Residents' Consumption Structure

Abstract

With the continuous deepening of digital economy construction, the importance of digital inclusive finance in economic development has become increasingly prominent. Consumption is the endogenous driving force for building a new development pattern, and expanding domestic demand is the strategic basis for realizing the "dual circulation." To achieve high-quality development of China's economy, we must pay attention to the upgrading of residents' consumption structure while promoting the improvement of their consumption level. Based on panel data from 31 provinces, autonomous regions, and municipalities in mainland China from 2011 to 2021, this paper constructs a two-way fixed effect model and an intermediary effect model for empirical research. The results show that the development of digital inclusive finance in China can promote the upgrading of residents' consumption structure. This promotion effect has a heterogeneous impact on urban and rural residents, being more pronounced in urban areas. Furthermore, digital inclusive finance promotes the upgrading of residents' consumption structure through both direct and indirect channels. Directly, it has revolutionized payment methods, facilitating consumer payments. Indirectly, it has increased residents' net property income. These findings provide empirical evidence and policy references for leveraging digital inclusive finance to expand domestic demand and achieve high-quality economic development.