A Study on the Dynamic Relationship between Digital Financial Development, Social Consumption and Economic Growth

Abstract

With the development of the Internet, digital finance provides “efficient, responsible and commercially sustainable” financial services to more economic agents at a lower cost of capital and in a more convenient way, thus achieving the long-term goal of financial services that are both inclusive and precise in the real economy. Social consumption and economic growth are closely related, as the economy increases, so does consumption, and consumption also drives economic growth. By building a VAR model and using econometric methods, this paper empirically analyses that the three factors, namely digital economy development, social consumption and economic growth, have obvious roles and long-term dynamic relationships, but there is no good dynamic cycle between the three factors, and gives corresponding policy recommendations.