Study on the Impact of Digital Payment on Consumption of Rural Residents in Hubei Province Based on Panel Data Model

Abstract

With the development of cloud computing, big data, Internet of Things, mobile Internet, artificial intelligence and other new generation information technology, digital payment methods are increasingly widely used. At the same time, the flourishing of major e-commerce platforms has led to huge changes in people's payment methods and consumption levels. In order to study the impact of digital payment on the consumption level and consumption structure of rural residents in Hubei Province, this paper uses panel data of 13 cities and states in Hubei Province from 2013 to 2020, and selects an individual fixed-effects model to conduct an empirical study, which mainly draws the following conclusions: first, digital payment has a significant positive impact on the consumption level of rural residents in Hubei Province; second, the level of digital payment has a significant negative effect on the survival-oriented expenditure, but not on the proportion of hedonic consumption and developmental consumption. This indicates that digital payment can optimize the consumption structure of rural residents in Hubei Province to a limited extent. Finally, corresponding suggestions are made based on the findings of this paper.