The Impact of Digital Inclusive Finance on Residents’ Cultural Consumption in China: An Urban-Rural Difference Perspective

This paper uses panel data from the 2014–2020 China Family Panel Studies (CFPS) to study the impact of digital inclusive finance (DIF) on the cultural consumption of urban and rural residents using two-way fixed effects. The results show that DIF can promote the growth of cultural consumption of urban and rural residents, and the promotion effect is greater for rural residents. Mechanism analysis shows that DIF increases the cultural consumption of urban and rural residents mainly through easing liquidity constraints, reducing precautionary savings, and increasing payment convenience. Moreover, reducing precautionary savings has a greater impact on the cultural consumption of urban residents, while the other two mechanisms have a greater impact on rural residents. In the heterogeneity analysis, credit business and some indicators reflecting the convenience of payment have a greater impact on rural residents. The insurance business has a greater impact on urban residents. This paper provides policy references for the development of DIF and the enhancement of residents’ cultural consumption.