Digital Inclusive Finance, Spatial Spillover and Regional Consumption Inequality Mitigation in China: A Perspective From the Consumption Potential Release

To achieve common prosperity in China, this study addresses Chinese inequality from the spatial convergence perspective of consumption potential release, considering the influence of digital inclusive finance. First, a dynamic evaluation method is used to build the residents' consumption potential release index to reflect regional consumption. Provinces are then classified into leading prosperous and other regions based on their material and spiritual affluence. This approach allows us to empirically study the catch‐up effect in consumption potential release between the leading prosperous regions and other regions and how digital inclusive finance influences it. The results show that China's inter‐regional consumption potential release gap has narrowed. The spatial spillover of consumption between the leading prosperous regions and other regions contributes to narrowing the consumption potential release gap. However, the direct effects and spatial spillover of digital inclusive finance inhibit this. Based on these findings, we provide policy recommendations for alleviating regional consumption inequality in China.