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

Area of Science:

• Economics
• Finance
• Regional Science

Background:

• Context of COVID-19 pandemic and China's "double circulation" strategy.
• Growing focus on high-quality economic development in China.
• Significance of digital inclusive finance and consumer consumption.

Purpose of the Study:

• To explore the impact of digitized inclusive finance on consumer consumption and high-quality economic development.
• To analyze the spatial spillover effects and nonlinear relationships.
• To investigate the mediating role of consumer consumption.

Main Methods:

• Utilized panel data from 30 Chinese provinces and cities (2011-2020).
• Employed spatial econometric models, including a semi-parametric spatial lag model.
• Examined mediating and substitution effects.

Main Results:

• Digital finance integration with consumption and economic development promotes high-quality economic growth.
• A nonlinear, inverted "U" relationship was found between digital inclusive finance and high-quality economic growth.
• Consumer consumption exhibits a substitution effect with digital inclusive financing in driving economic development.

Conclusions:

• Promoting digital inclusive finance is crucial for high-quality economic development.
• Harnessing regional spillover effects of digital finance is essential.
• Encouraging consumer consumption is vital for optimizing economic structures and fostering emerging industries.