From market segmentation to consumption growth: How does digital-real integration strengthen the consumption stimulation effect in a unified national market?

Xiuzhen Huo and Yuanyuan Dong

International Review of Economics & Finance, 2025, vol. 103, issue C

Abstract: In the era of the global digital economy, the construction of a unified national market is a key pathway to breaking market segmentation and unlocking consumption potential. Based on provincial panel data from China covering the period 2011–2022, this study systematically analyzes the impact of the unified national market on consumption growth and its underlying mechanisms. The research finds that the unified national market significantly promotes consumption growth, with digital-physical integration further strengthening this effect. Moreover, market integration drives consumption growth through two pathways: the expansion of digital inclusive finance and the upgrading of industrial structure. Furthermore, the policy effects of the unified national market are more significant in regions with high levels of economic development, urbanization, and marketization. This study provides new evidence for the consumption-driven mechanism under the “institutional integration-technology collaboration” framework, offering valuable insights for emerging economies to release domestic demand through institutional reforms.

Keywords: Unified national market; Consumption growth; Digital-real integration; Digital inclusive finance; Industrial structure upgrading (search for similar items in EconPapers)
JEL-codes: E2 G2 O3 R1 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:103:y:2025:i:c:s1059056025006604

DOI: 10.1016/j.iref.2025.104497

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