How Does Digital Inclusive Finance Impact Consumption Structure of Urban–Rural Residents? Evidence From Household Survey Data in China

ABSTRACT This study investigates the nonlinear relationship between digital inclusive finance (DIF) and the consumption structure of urban–rural residents in China, focusing on its underlying mechanisms. Using panel data from the China Household Finance Survey (CHFS) and the DIF index, we employ fixed effects, mediation effects, and moderation effects models. The results show that DIF has a U‐shaped relationship with subsistence consumption, a linear positive effect on developmental consumption, and nonlinear impacts on enjoyable consumption. Credit constraints alleviation is identified as a key mechanism through which DIF enhances developmental consumption. Additionally, the effects of DIF are more pronounced in underdeveloped regions and rural areas. These effects are also stronger among young and midlife households as well as low‐ to middle‐income groups, highlighting significant regional and demographic heterogeneity. These findings provide critical insights for policymakers aiming to leverage DIF to optimize consumption structures and promote financial inclusion, particularly in underserved populations.