 Financial development, electronic payments, and residents' consumption: Evidence from rural ChinaZengjian Huang, Leyi Wang and Wensong Yu Finance Research Letters, 2025, vol. 71, issue C Abstract: The development of rural finance, by providing convenient credit, introducing modern financial services, and improving electronic payment systems, addresses the financial needs of rural residents, fosters the growth of rural industries, and improves the quality of life. This study utilizes provincial panel data from China covering the period 2011 to 2021 to examine the impact of rural financial development on the consumption levels of rural residents. The findings indicate that rural financial development exerts a significant positive influence on rural consumption, with rural electronic payments serving as a transmission mechanism in this relationship. A heterogeneity analysis further reveals that the effect of rural financial development on consumption levels differs according to the level of digital financial inclusion. Specifically, the positive impact is more pronounced in provinces with higher levels of digital financial inclusion compared to those with lower levels. Keywords: Financial services; Rural financial development; Rural residents' consumption; Rural electronic payments; Rural industries (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:finlet:v:71:y:2025:i:c:s1544612324014843 DOI: 10.1016/j.frl.2024.106455 Access Statistics for this article Finance Research Letters is currently edited by R. Gençay More articles in Finance Research Letters from Elsevier |
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