Effect of Digital Inclusive Finance on the Upgrading of the Consumption Structure of Rural Residents in China

In order to study whether digital inclusive finance has played an active role in promoting rural residents’ consumption and optimizing consumption structure under the background of implementing rural revitalization strategy in China. This study uses macro data from 31 provincial regions in China from 2011 to 2021, and use a fixed-effect model to empirically study the impact of China’s digital inclusive finance development on the scale and structure of rural residents’ consumption, as well as the mechanism and effect differences. The study finds that the development of digital inclusive finance in China can drive the consumption level of rural residents to increase and optimize the consumption structure of rural residents, thus achieving the consumption upgrading of rural residents. At the same time, based on the test of mediating effect, it is found that the development of digital inclusive finance in China can have a positive impact on the consumption upgrading of rural residents by promoting the development of e-commerce. In addition, for different levels of consumption level of rural residents, the development of digital inclusive finance has a positive impact on it, and there is no significant marginal increase or decrease effect. However, for different levels of consumption structure of rural residents, the development of digital inclusive finance has a more obvious promoting effect at its low level. When the development of digital inclusive finance reaches a certain height, its effect on the consumption level of rural residents will weaken, but it will be more significant in optimizing and improving the consumption structure of rural residents in China. There are also differences in the effects of digital inclusive finance on the consumption upgrading of rural residents in different regions, incomes and industrial structures.