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Does mobile payment adoption really increase online shopping expenditure in China: A gender-differential analysis

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  • Yang, Wei
  • Vatsa, Puneet
  • Ma, Wanglin
  • Zheng, Hongyun

Abstract

Mobile payments are ubiquitous in China and facilitate myriads of offline and online transactions daily. However, little is known about the spending effects of mobile payment adoption. Accordingly, this study is devoted to examining the effects of mobile payment adoption on household online shopping expenditure. Focusing on gender differentials, we analyze the 2017 Chinese General Social Survey data using the instrumental-variable-based Tobit model. Our results show that mobile payment adoption significantly increases household online shopping expenditure for females, while it does not affect online shopping expenditure for males—the spending effects of mobile payment adoption are not gender-neutral. Thus, gender-specific promotional strategies and initiatives may help increase mobile payment adoption and boost online shopping. The positive spending effect of mobile payment adoption on households’ online shopping points to synergies between mobile payment and e-commerce platforms. Policymakers should consider regulations that encourage the integration of these platforms and, at the same time, foster innovation and competition in the industry.

Suggested Citation

  • Yang, Wei & Vatsa, Puneet & Ma, Wanglin & Zheng, Hongyun, 2023. "Does mobile payment adoption really increase online shopping expenditure in China: A gender-differential analysis," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 99-110.
    • Handle: RePEc:eee:ecanpo:v:77:y:2023:i:c:p:99-110
    DOI: 10.1016/j.eap.2022.11.001
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    2. Zhu, Mingxun & Wang, Yanping & Wei, Min & Cai, Zhen, 2023. "How does digital finance affect consumer online shopping: A comprehensive analysis based on econometric model," Finance Research Letters, Elsevier, vol. 54(C).

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    More about this item

    Keywords

    Mobile payment; Online shopping; Expenditure; Gender difference; IV-Tobit model; China;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • P24 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation

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