Digital Inclusive Finance and Rural Consumption Upgrading in China

Using provincial panel data from 2012–2021, this study examines how digital inclusive finance (DIF) influences rural residents’ consumption upgrading in China. A fixed-effects model and robustness tests were applied to identify the mechanisms through which DIF affects household consumption structure. Results show that DIF significantly promotes the transformation from subsistence to development-oriented consumption by expanding financial access, enhancing income growth, and improving credit availability. Regional heterogeneity analysis reveals that the effect is stronger in eastern provinces and in areas with higher levels of digital infrastructure. Threshold regression results further indicate that the impact of DIF rises with increases in financial literacy and digital penetration. These findings suggest that deepening digital financial inclusion can narrow urban-rural gaps and support the well-being of rural households. Policy implications include improving rural financial infrastructure, promoting digital literacy, and developing products that meet diverse household needs. Overall, digital inclusive finance contributes to sustainable family consumption and inclusive economic growth in China.