Digital finance development, urban space aggregation, and consumption upgrading: An empirical test based on spatial econometric models

Based on provincial panel data covering the South China region, including Guangdong, Guangxi, Hainan, Fujian, Hunan and Jiangxi provinces, from 2013 to 2023. This study employs a Spatiotemporal Double Fixed Effects Spatial Durbin Model (SDM) to systematically examine the impact of digital finance development and urban space agglomeration on consumption upgrading in cities, along with their spatial transmission characteristics. It further investigates their synergistic effects and heterogeneous manifestations. Findings reveal that both digital finance development and urban space agglomeration exert direct and spatial spillover effects on consumption upgrading, with pronounced synergistic empowerment characteristics. Consumption upgrading in South China exhibits a “high-high” agglomeration pattern, where these effects are more pronounced in highly urbanized areas and economically developed provinces. This study not only fills a research gap on the synergistic role of digital finance and leisure spaces in driving consumption upgrading but also provides empirical insights for targeted policies to promote coordinated urban consumption upgrading.