INFLUENCE OF DIGITAL FINANCIAL ADVANCEMENT ON THE CONSUMPTION STRUCTURE OF CHINESE DOMICILES

Abstract

This study examines the mechanisms through which digital financial development influences residents' consumption structures. Employing panel fixed-effects regression, mediation effect tests, and heterogeneity analyses across regions, income levels, and human capital groups, it explores the impact of digital finance on disposable income, consumer credit, and consumption patterns. Key variables, including entrepreneurial activity, innovation, and the payment environment, are incorporated to provide a comprehensive analysis. Findings show a strong link between digital finance and consumption patterns, guiding policymakers in shaping targeted financial policies for diverse regions and groups.