Abstract: Using data from the China Labor Dynamics Survey (CLDS), the impact of digital inclusive finance on survival-type consumption among rural households in China, along with its underlying mechanism, was empirically examined. Findings revealed that digital inclusive finance significantly promoted growth in survival-type consumption among rural residents, with this benchmark conclusion remaining robust after multiple robustness tests. The impact exhibited heterogeneity: The improvement effect was more pronounced in areas with underdeveloped traditional finance, households distant from county or town centers, and higher per capita income groups. Channel analysis indicated that digital finance primarily influenced rural consumption through two mechanisms: Income growth and vulnerability mitigation. Further analysis using Lasso algorithm-based forecasts of expected consumption revealed that as basic consumption levels improved, digital financial development might paradoxically trigger excessive consumption tendencies among rural households—demonstrating a “double-edged sword effect.” This adverse impact was particularly pronounced among individuals with weaker time preference.

Key words: digital inclusive finance, rural households, survival-type consumption, income growth, excessive consumption