Study on the impact of digital finance on 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.