The Impact of Digital Financial Inclusion on Urban and Rural Citizens' Consumption in Zhejiang Province

Abstract

In order to create a harmonized society, it is important to reduce the urban-rural consumption disparity. Digital financial inclusion plays a major role in weakening the rural-urban consumption gaps and promoting common prosperity. Zhejiang Province is located in southeastern China, with a large population and developed economy. For the past few years, moreover, its rapid growth in the field of digital economy has enabled it to lay a deep foundation for the growth of digital financial inclusion. This paper explores the influence of the current growth of digital inclusive finance on the consumption of urban and rural residents in Zhejiang Province by selecting each city's panel data at the prefecture level in Zhejiang Province during the period of 2011-2021.Results displayed: firstly, as digital financial inclusion grows in Zhejiang, both rural and urban consumers will benefit from it;Secondly, the growth of digital financial inclusion will have a more remarkable effect on the consumption of rural residents than that of urban residents, i.e., urban-rural consumption disparities in Zhejiang Province can be narrowed by digital financial inclusion.