Empowerment Mechanisms and Empirical Evidence of Payment Technology in Capacity Expansion and Quality Improvement of Residents’ Consumption

Abstract

The time-varying difference-in-difference model is used to identify the impact of payment technology on residents' consumption, and the moderation effect analysis method is used to identify its mechanism. It is found that payment technology promotes consumption capacity expansion and quality improvement(CEQI) through three pathways of alleviating liquidity constraints, reducing transaction costs and weakening the payment of pain. The parallel and serial mechanisms of the three are further explored. The effect of payment technology on the CEQI of residents' consumption shows obvious heterogeneity due to differences in urban and rural household registration and financial literacy. Based on the empirical research results and the national conditions of China, targeted policy recommendations are proposed from the demand side, the supply side and the technological side.

Keywords

payment technology / capacity expansion and quality improvement / residents' consumption / new quality productive force / time-varying difference-in-difference / moderating effect

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Funding

National Natural Science Foundation of China(71874027)

Ministry of Education Humanities and Social Sciences Research Youth Fund Project(23YJC760028)