 Digital finance, rural E-commerce development and consumption upgradingWei Chen and Jiawei Li International Review of Financial Analysis, 2025, vol. 104, issue PA Abstract: This study, based on the micro-panel data from the China Family Panel Studies (CFPS) and the digital financial inclusion index at the prefecture level, focuses on the internal mechanisms through which rural e-commerce and digital finance synergistically promote consumption upgrading. Using a multi-period difference-in-differences (DID) approach, this research evaluates the effects of e-commerce demonstration policies and analyzes the transmission pathways through a mediation effect model. The findings reveal that e-commerce demonstration policies significantly enhance consumption upgrading among rural households. Digital finance serves as a crucial mediating variable, amplifying the promotional effect of e-commerce development on consumption upgrading by reducing transaction frictions and optimizing resource allocation. Further heterogeneity analysis indicates that the policies have a more pronounced effect on stimulating consumption upgrading in regions with lower levels of economic development. Keywords: Rural e-commerce development; Digital finance; Consumption upgrading (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:104:y:2025:i:pa:s1057521925004387 DOI: 10.1016/j.irfa.2025.104351 Access Statistics for this article International Review of Financial Analysis is currently edited by B.M. Lucey More articles in International Review of Financial Analysis from Elsevier |
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