Digital inclusive finance, consumer consumption and high-quality economic development

Abstract

Against the backdrop of the COVID-19 pandemic and China’s pursuit of the "double circulation" strategy, scholars are increasingly focusing on ensuring high-quality economic development in China. In this regard, digital inclusive finance and consumer consumption are of utmost significance. This study employs panel data from 30 provinces and cities spanning 2011 to 2020 to explore the impact of digitized inclusive finance on consumer consumption and high-quality economic development through a spatial econometric model. Our findings indicate that integrating digital finance with consumer consumption and economic development fosters high-quality economic growth. Furthermore, our semi-parametric spatial lag model suggests a nonlinear relationship between digital inclusive finance and high-quality economic growth, shaped like an inverted "U". Additionally, we examine the mediating effect of consumer consumption on the relationship between digital inclusive finance and high-quality economic development. Our results reveal a substitution effect between digital inclusive financing and consumer consumption in promoting high-quality economic development. Therefore, it is essential to promote the development of digital inclusive finance, harness its positive spillover effects between regions, and encourage an increase in consumer consumption to optimize the consumption structure, upgrade and adjust the industrial structure, and spur growth in emerging industries.

Digital inclusive finance, industrial structure, and economic growth: An empirical analysis of Beijing-Tianjin-Hebei region in China

“…From the perspective of core explanatory variables, the influence coefficient of the index of digital inclusive finance (LnDIF) on economic growth (LnGDP) is 0.151, which is significant at 1%, indicating that digital inclusive finance promotes economic growth. Hypothesis 1 has been preliminarily verified and is consistent with previous research results [ 14 , 52 ]. This result may be because digital inclusive finance has the advantages of universality, convenience, and low cost.…”

“…Other control variables are basically the same as column (1). Since previous studies have paid more attention to the impact of the total index of digital inclusive finance on the economy and ignored the impact of the sub-dimensions of digital inclusive finance [12,52,54], this conclusion further enriches the existing research results.…”

“…Since the existing research focuses on the impact of digital inclusive finance on economic growth and ignores regional differences, this paper analyzes the heterogeneity of the effect of digital inclusive finance on economic growth from three perspectives: the level of regional economic development, the degree of development of digital inclusive finance and the level of scientific and technological innovation, and further improves the existing research results [ 12 , 14 , 52 ].…”

“…This index represents the regional economic development. Referring to the practice of Wang and Wen [ 52 ], the per capita GDP is selected to represent the level of economic growth. The larger the index, the higher the level of economic growth.…”

The Impact of Digital Inclusive Finance on Household Consumption: Empirical Analysis Based on the Yangtze River Economic Belt

“…Fang Xianming et al (2023) analyzed provincial panel data and concluded that the positive effect of digital inclusive finance on residents' consumption is strongest in the western region [7] . Xue Qiutong and Feng Sixian (2022) believe that digital inclusive finance has the characteristics of convenience, speed and inclusiveness, and will bring greater changes to rural residents' living and consumption patterns [8] . Zhou Caiyun and Yang Yijie (2023) [9] , Fan Fangzhi and Peng Tiantian (2023) [10] believe that the impact of digital inclusive finance on rural residents' consumption shows obvious regional differences, and the promotion effect on the western region is the most significant.…”