E-Commerce Development and Household Consumption Growth in China

Xubei Luo, Yue-000541442 Wang and Xiaobo Zhang

No 8810, Policy Research Working Paper Series from The World Bank

Abstract: China has quickly become the largest e-commerce market in the world. By matching a nationally representative China Family Panel Studies survey with county-level e-commerce information obtained from Alibaba, this paper examines how e-commerce development has shaped household consumption growth in China. The paper presents three major findings. First, e-commerce development is associated with higher consumption growth. Second, the relationship is stronger for the rural sample, inland regions, and poor households, suggesting that e-commerce development helps reduce spatial inequality in consumption. Third, the consumption of durable goods and in-style goods has grown faster than the consumption of local services.

Date: 2019-04-10
New Economics Papers: this item is included in nep-cna, nep-pay and nep-tra
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