IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v86y2025ipfs1544612325020616.html

Insurance density, financial accessibility, and the upgrade of resident consumption

Author

Listed:
  • Xu, Siyun
  • Ma, Zhiyue

Abstract

Based on data from 31 provincial-level administrative regions in China (excluding Hong Kong, Macau, and Taiwan) from 2010 to 2023, this study empirically investigates the effects and mechanisms of insurance density and financial accessibility on the upgrading of household consumption, utilizing bidirectional fixed effects models and moderation effect models. The results indicate that: (1) both insurance density and financial accessibility significantly promote the upgrading of household consumption; (2) financial accessibility plays a significant moderating role in the relationship between insurance density and household consumption upgrading; (3) the impact of insurance density on household consumption upgrading displays heterogeneity between regions with high and low levels of population aging; (4) the effect of financial accessibility on household consumption upgrading shows heterogeneity in areas with large and small income gaps between urban and rural residents.

Suggested Citation

  • Xu, Siyun & Ma, Zhiyue, 2025. "Insurance density, financial accessibility, and the upgrade of resident consumption," Finance Research Letters, Elsevier, vol. 86(PF).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pf:s1544612325020616
    DOI: 10.1016/j.frl.2025.108807
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325020616
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.108807?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Shuheng Yu & Xinxin Ma & Peng Zhan, 2024. "Effects of the Resident Basic Medical Insurance Reform on Household Consumption in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 32(1), pages 96-129, January.
    2. Yingyuan Liu & Qian Wan & Wenhui Chen, 2024. "RETRACTED ARTICLE: Digital Inclusive Finance as a Catalyst for Rural Revitalization: An Empirical Analysis from the County Development Perspective in Hubei Province," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 11548-11580, September.
    3. Mingyong Hong & Ji Wang & Mengjie Tian, 2022. "Rural Social Security, Precautionary Savings, and the Upgrading of Rural Residents’ Consumption Structure in China," Sustainability, MDPI, vol. 14(19), pages 1-17, September.
    4. Zhao, Xiuli & Lin, Haili & Zhang, Wenjuan, 2025. "Can digital inclusive finance promote rural revitalisation?," Finance Research Letters, Elsevier, vol. 85(PB).
    5. Xiao Hu & Zhengjie Wang & Jun Liu, 2022. "The impact of digital finance on household insurance purchases: evidence from micro data in China," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 47(3), pages 538-568, July.
    6. Chen, Chuna & Tan, Zhuomin & Liu, Song, 2024. "How does financial literacy affect households’ financial fragility? The role of insurance awareness," International Review of Economics & Finance, Elsevier, vol. 95(C).
    7. Wu, Yanxia & Zhang, Jie, 2025. "Digital inclusive finance and rural households’ economic resilience," Finance Research Letters, Elsevier, vol. 74(C).
    8. Wu, Zixi & Wang, Yiqin, 2023. "Consumer finance and consumption upgrading: An empirical study of CHFS," Finance Research Letters, Elsevier, vol. 54(C).
    9. Jie Liu & Zhengyin Li & Xiangdong Hu, 2023. "A Study of the Impact of Mobile Payment on the Enhancement of Consumption Structure and Pattern of Chinese Rural Households," Agriculture, MDPI, vol. 13(11), pages 1-22, October.
    10. Fei Li & Yufei Wu & Jinli Liu & Shen Zhong, 2022. "Does digital inclusive finance promote industrial transformation? New evidence from 115 resource-based cities in China," PLOS ONE, Public Library of Science, vol. 17(8), pages 1-23, August.
    11. Yang, Yang & Lin, Zibo & Xu, Zhaoyi & Liu, Shuwen, 2024. "The impact of digital finance on regional economic resilience," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).
    12. Qianqian Li & Qilin Liu, 2023. "Impact of Digital Financial Inclusion on Residents’ Income and Income Structure," Sustainability, MDPI, vol. 15(3), pages 1-20, January.
    13. Cheng, Qiongwen & Zhao, Xiaoge & Zhong, Shihu & Xing, Yudan, 2024. "Digital financial inclusion, resident consumption, and urban carbon emissions in China: A transaction cost perspective," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1336-1352.
    14. Huang, Zhenzhen & Han, Junyi & Xu, Zhaoyi & Dai, Rui, 2025. "Digital financial inclusion and urban-rural disparities," International Review of Economics & Finance, Elsevier, vol. 104(C).
    15. Wei Li & Lu Zhang & Mingyue Pu & Hui Wang, 2025. "Digital inclusive finance, rural revitalization and rural consumption," PLOS ONE, Public Library of Science, vol. 20(1), pages 1-20, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zeng, Yuhan & Zhou, Xia, 2025. "The dynamic relationship among digital inclusive finance, integration of industries in rural areas, and rural revitalization," Finance Research Letters, Elsevier, vol. 85(PA).
    2. Chen, Yiru & Liu, Li & Zheng, Sufang, 2025. "Impact of digital financial inclusion on rural revitalization," Finance Research Letters, Elsevier, vol. 85(PC).
    3. Jianping Cha & Yashan Deng & Kai Zhao & Feifei Li, 2026. "How Does the Development of the Digital Economy Enhance Farmers' Livelihood Resilience: The Roles of E‐Commerce and Digital Finance," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(2), pages 2342-2358, April.
    4. Lin, Siyuan & Miao, Shuchao, 2025. "The enhancing effect and role path of digital finance on the resilience of agricultural industry chain," Finance Research Letters, Elsevier, vol. 83(C).
    5. Zhao, Xiuli & Lin, Haili & Zhang, Wenjuan, 2025. "Can digital inclusive finance promote rural revitalisation?," Finance Research Letters, Elsevier, vol. 85(PB).
    6. Xu, Hao, 2026. "Unveiling the role of digital finance in technological catch-up: A multisector growth model with firm-level evidence," Economic Modelling, Elsevier, vol. 155(C).
    7. Qin, Teng & Qin, Chuan & Wang, Jiaxin & Xing, Haiyan, 2025. "Can the digital economy enhance enterprises' breakthrough innovation?," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    8. Xie, Junming, 2025. "Banking evolution in the digital age: How digital financial inclusion induces systematic financial risk?," Finance Research Letters, Elsevier, vol. 80(C).
    9. Luo, Mingjin & Wang, Shengquan, 2026. "Behind booms: the digitalization of underperforming Chinese companies," Journal of Business Research, Elsevier, vol. 206(C).
    10. Ziqian Zhao & Decai Tang & Jiannan Li, 2025. "Driving role of digital finance on economic resilience: threshold effects of industrial structure upgrading and social security," Economic Change and Restructuring, Springer, vol. 58(6), pages 1-43, December.
    11. Luo, Yaling & Zhou, Lei & Zhang, Weike, 2025. "Can e-commerce bring dividends to rural households? New evidence from the income inequality perspective," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 363-379.
    12. Gao, Lu & Li, Bin, 2025. "Development of inclusive finance, digital infrastructure, and the urban–rural education gap," Finance Research Letters, Elsevier, vol. 86(PF).
    13. Feng, Yanchao & Yan, Tong & Hu, Shilei & Zhang, Zhenhua, 2025. "The impact of digital inclusive finance on household carbon emissions: Empirical evidence from China," International Review of Financial Analysis, Elsevier, vol. 102(C).
    14. Wang, Yang & Cai, Qiang, 2025. "Education fiscal expenditure, digital inclusive finance, and urban-rural education returns," Finance Research Letters, Elsevier, vol. 86(PG).
    15. Chen Luo & Wenwen Yu & Lindong Li & Aizhi Li & Jinbo Du, 2026. "How does digital finance affect electricity consumption? an empirical analysis of the Yangtze River Economic Belt of China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 28(3), pages 6677-6694, March.
    16. Jiang, Wenjing & Yang, Siyu, 2026. "The dynamic impact of digital village development and inclusive finance development on the livelihood resilience of rural households," Finance Research Letters, Elsevier, vol. 87(C).
    17. Dongjing Chen & Xiaotong Guo, 2023. "Impact of the Digital Economy and Financial Development on Residents’ Consumption Upgrading: Evidence from Mainland China," Sustainability, MDPI, vol. 15(10), pages 1-25, May.
    18. Zhao, Weimin & Chen, Na, 2024. "Does old-age security promote rural residents' consumption? A decomposition based on contribution and replacement rates," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 817-830.
    19. Chen, Xiaojie & He, Guangwen, 2025. "Digital credit and investment in risky financial assets: Evidence from rural China," Finance Research Letters, Elsevier, vol. 86(PF).
    20. Xu, Zhiyi & Yang, Jindi, 2025. "Impact of digital finance on rural industry revitalization," International Review of Economics & Finance, Elsevier, vol. 97(C).

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:86:y:2025:i:pf:s1544612325020616. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.