Research on the Promotional Effect of Digital Finance on Consumption Upgrade

Owing to the deficiency in conventional financial services, the notably inclusive regulatory climate, and the swift advancement of information technology, China 's digital finance sector has ushered in a series of transformative shifts within the financial market, leveraging its distinctive innovative prowess. A pivotal application lies in providing consumers with comprehensive financial services. This paper, grounded in theoretical analysis, constructs an empirical econometric model. It leverages China 's macro data spanning from 2011 to 2021 to scrutinize the influence of digital financial development on the elevation of Chinese residents ' consumption standards. Moreover, it empirically probes into the impact mechanism. Empirical findings evince that digital finance has spurred the enhancement of residents ' consumption on twofronts:firstly, by fostering an augmentation in the consumption echelon of Chinese residents; secondly, by propelling the refinement of the consumption composition among Chinese residents.