The Impact of Financial Technology on Consumer Finance: Mechanisms and Empirical Evidence from China
DOI:
https://doi.org/10.54097/bykh9y46Keywords:
Financial Technology, Consumer Finance, Mediation Effect, HeterogeneityAbstract
Under the background of China’s policy of expanding domestic demand, this paper uses the panel data of 31 provincial regions from 2011 to 2023 to construct the index of Fintech development level, and uses the two-way fixed effect model to empirically test the impact of Fintech on consumer finance. And further through the instrumental variable method, replacing the core explanatory variables, eliminating special years and other methods for endogenous and robustness tests. The results show that FinTech has significantly promoted the development of consumer finance, which is still valid after a series of robustness tests. Mechanism analysis shows that FinTech mainly promotes the development of consumer finance by increasing residents’ disposable income and reducing the uncertainty risks faced by residents. Heterogeneity analysis shows that this effect is stronger in eastern China and regions with lower levels of financial development. These findings expand the literature on financial technology and consumer finance, and provide policy implications for the use of financial technology to stimulate consumption and promote high-quality economic development.
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