The Impact of Financial Inclusion on Residents’ Investments in the Digital Economy

Abstract

In order to address the problems of low returns on residents' savings, few investment channels and uneven distribution of financial resources, this paper constructs a Probit model to discuss the impact of digital financial inclusion on residents' investment decisions; and a Tobit model to discuss the impact of the digital economy financial inclusion index on the amount of investment generated. The experiment results show that digital financial inclusion has a positive impact on residents' investment and investment amount, and can promote residents' investment and increase their investment amount. Influenced by regional characteristics and individual traits, the promotion effect of digital finance on investment is more significant in the eastern region and the group with high education levels. In view of this, this paper puts forward proposals to expand the coverage of financial services and improve the imbalance in the allocation of financial resources; introduce various financial products to enhance the quality of financial services; and popularize financial knowledge to benefit the disadvantaged groups at the grassroots level.