The Impact of Digital Financial Inclusion on Relative Deprivation of Household Consumption: An Analysis Based on CHFS Data

The present study focuses on the impact of digital inclusive finance on household consumption relative deprivation. The study utilises the microdata from the China Household Finance Survey (CHFS) to systematically explore the influence and mechanism of digital inclusive finance on household consumption relative deprivation from a micro perspective. The findings of the study indicate that digital inclusive finance has a significant impact on the exacerbation of household consumption relative deprivation. This conclusion is supported by the 1% significance test when measured by the total index of digital inclusive finance and the three-dimensional indices of coverage breadth, digitalization degree, and usage depth. The mechanism analysis reveals that digital inclusive finance affects household consumption relative deprivation by intensifying household income relative deprivation. The heterogeneity analysis further finds that the aggravating effect of digital inclusive finance on consumption relative deprivation is more pronounced in urban households, households in first-tier cities, and high-income households, while higher financial literacy and digital capabilities can effectively mitigate this effect. This study challenges the prevailing research perspective, which has historically concentrated on the "positive promotion" of digital inclusive finance on household consumption. Instead, it adopts an alternative approach, termed "consumption relative deprivation," which examines the differential responses of various groups to digital inclusive finance. This study contributes to the expansion of research dimensions in the field of digital inclusive finance and household consumption. The objective of this study is to capitalise on the inclusive advantages of digital finance, thereby facilitating enhanced access to financial services for vulnerable groups. The study further aims to promote the sustainable development of digital inclusive finance, alleviate household consumption inequality, and explore the scientific basis for promoting common prosperity.