IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i16p4349-d256868.html
   My bibliography  Save this article

Research on the Online Consumption Effect of China’s Urbanization under Population Aging Background

Author

Listed:
  • Xuyang Li

    (School of Economics and Management, China University of Geosciences, Wuhan 430074, China)

  • Tongping Li

    (School of Economics and Management, China University of Geosciences, Wuhan 430074, China)

  • Hui Li

    (School of Economics and Management, Northwest A&F University, Xianyang 712100, China)

  • Junmei Qi

    (Centre Européen de Recherche en Economie Financière et Gestion des Entreprises, Universite de Lorraine, 54000 Nancy, France)

  • Linjie Hu

    (School of Economics and Management, China University of Geosciences, Wuhan 430074, China)

Abstract

With the development of e-commerce, online consumption—a new sustainable consumption mode—has rapidly developed. Online shopping has become an important consumption method for Chinese residents, and the era of online consumption has arrived. Urbanization is an important foundation for the development of online consumption, and its impact on online consumption is becoming increasingly important. In addition, with the decline of fertility in China, the proportion of the elderly population is increasing. As the macro background of the current economic operation of China, population aging has long been a concern of the government. However, the existing research on urbanization, population aging and online consumption is insufficient. In this context, this study is of great significance to promote the sustainable development of the online consumption mode and enrich the theory of resident consumption in the era of the network economy. In this paper, by adopting the system generalized method of moments (GMM), we conducted an empirical analysis of the relationship between urbanization, population aging, and online consumption, based on panel data from 31 provinces in China from 2007 to 2017. Furthermore, we examined the regional heterogeneity of urbanization’s online consumption effect. The results reveal that, first, urbanization has a positive relationship with online consumption. Second, urbanization’s online consumption effect has regional differences, with the largest positive effect being in the western area of China, the second in the eastern area of China and the smallest in the central area of China. Third, aging inhibits the development of online consumption. Specifically, it mainly includes two aspects. On the one hand, aging has a direct negative impact on online consumption. On the other hand, aging has a moderating effect on urbanization’s online consumption effect, which weakens the impact of urbanization. The rising of urban residents’ income has significant explanatory power to the change of online consumption in the eastern and western regions. Therefore, the policy implications are as follows: promoting the strategic transformation of urbanization, giving full play to the online consumption effect of urbanization; adjusting and improving population policy to cope with the population aging; constantly raising people’s income level and enhancing consumption potential.

Suggested Citation

  • Xuyang Li & Tongping Li & Hui Li & Junmei Qi & Linjie Hu, 2019. "Research on the Online Consumption Effect of China’s Urbanization under Population Aging Background," Sustainability, MDPI, vol. 11(16), pages 1-14, August.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:16:p:4349-:d:256868
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/16/4349/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/16/4349/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ram, Rati, 1982. "Dependency Rates and Aggregate Savings: A New International Cross-Section Study," American Economic Review, American Economic Association, vol. 72(3), pages 537-544, June.
    2. Heinrich Hock & David Weil, 2012. "On the dynamics of the age structure, dependency, and consumption," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(3), pages 1019-1043, July.
    3. Curtis, Chadwick C. & Lugauer, Steven & Mark, Nelson C., 2017. "Demographics and aggregate household saving in Japan, China, and India," Journal of Macroeconomics, Elsevier, vol. 51(C), pages 175-191.
    4. Waldfogel, Joel, 2003. "Preference Externalities: An Empirical Study of Who Benefits Whom in Differentiated-Product Markets," RAND Journal of Economics, The RAND Corporation, vol. 34(3), pages 557-568, Autumn.
    5. Poumanyvong, Phetkeo & Kaneko, Shinji & Dhakal, Shobhakar, 2012. "Impacts of urbanization on national transport and road energy use: Evidence from low, middle and high income countries," Energy Policy, Elsevier, vol. 46(C), pages 268-277.
    6. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    7. Pietro Senesi, 2003. "Population Dynamics and Life-Cycle Consumption," CEIS Research Paper 2, Tor Vergata University, CEIS.
    8. Mueller, Dennis C., 1997. "First-mover advantages and path dependence," International Journal of Industrial Organization, Elsevier, vol. 15(6), pages 827-850, October.
    9. Leo Van Hove & Farhod P. Karimov, 2016. "The role of risk in e-retailers’ adoption of payment methods: evidence for transition economies," Electronic Commerce Research, Springer, vol. 16(1), pages 27-72, March.
    10. Sabrina Bunyan & Alan Collins & Gianpiero Torrisi, 2016. "Analysing Household and Intra-urban Variants in the Consumption of Financial Services: Uncovering “Exclusion” in an English City," Journal of Consumer Policy, Springer, vol. 39(2), pages 199-221, June.
    11. Leff, Nathaniel H, 1969. "Dependency Rates and Savings Rates," American Economic Review, American Economic Association, vol. 59(5), pages 886-896, December.
    12. Scott Ross Baker & Contantine Yannelis, 2017. "Income Changes and Consumption: Evidence from the 2013 Federal Government Shutdown," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 23, pages 99-124, January.
    13. Pietro Senesi, 2003. "Population dynamics and life-cycle consumption," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(2), pages 389-394, May.
    14. Ioannides, Yannis M., 1994. "Product differentiation and economic growth in a system of cities," Regional Science and Urban Economics, Elsevier, vol. 24(4), pages 461-484, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zuzana Svobodová & Jaroslava Rajchlová, 2020. "Strategic Behavior of E-Commerce Businesses in Online Industry of Electronics from a Customer Perspective," Administrative Sciences, MDPI, vol. 10(4), pages 1-24, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xuyang Li & Tongping Li & Hui Li & Junmei Qi & Linjie Hu, 2019. "Research on the Online Consumption Effect of China’s Urbanization under Population Aging Background," Post-Print hal-03007148, HAL.
    2. Kam-Ki Tang & Benjamin ShiJie Wong, "undated". "The Ageing, Longevity and Crowding Out Effects on Private and Public Savings: Evidence from Dynamic Panel Analysis," MRG Discussion Paper Series 3409, School of Economics, University of Queensland, Australia.
    3. Neha Jain & Srinivas Goli, 2022. "Demographic change and private savings in India," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 24(1), pages 1-29, June.
    4. Lei He & Shuyi Zhou & Zilan Liu, 2020. "How is aggregate household consumption affected jointly by longevity, pension, and aging? Theory and evidence," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(4), pages 499-512, December.
    5. Jain, Neha & Goli, Srinivas, 2021. "Demographic Change and Private Savings in India," SocArXiv n73ab, Center for Open Science.
    6. Lei He & Shuyi Zhou & Zilan Liu, 0. "How is aggregate household consumption affected jointly by longevity, pension, and aging? Theory and evidence," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 0, pages 1-14.
    7. Yingzhu Yang & Rong Zheng & Lexiang Zhao, 2021. "Population Aging, Health Investment and Economic Growth: Based on a Cross-Country Panel Data Analysis," IJERPH, MDPI, vol. 18(4), pages 1-16, February.
    8. Mehri , N. & Messkoub, M. & Kunkel, S., 2019. "Trends, determinants and the implications of population aging in Iran," ISS Working Papers - General Series 646, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    9. Ken Chamuva Shawa, 2016. "Drivers Of Private Saving In Sub-Saharan African Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 41(2), pages 77-110, June.
    10. Matthew Higgins & Jeffrey G. Williamson, 1996. "Asian Demography and Foreign Capital Dependence," NBER Working Papers 5560, National Bureau of Economic Research, Inc.
    11. Li, Hongbin & Zhang, Jie & Zhang, Junsen, 2007. "Effects of longevity and dependency rates on saving and growth: Evidence from a panel of cross countries," Journal of Development Economics, Elsevier, vol. 84(1), pages 138-154, September.
    12. Long, X. & Ji, Xi & Ulgiati, S., 2017. "Is urbanization eco-friendly? An energy and land use cross-country analysis," Energy Policy, Elsevier, vol. 100(C), pages 387-396.
    13. Kim Sujin, 2018. "Investment Puzzle: Deeper Roots," Working Papers id:12433, eSocialSciences.
    14. Tuğba AKIN & Kıymet YAVUZASLAN, 2019. "The effects of demographic structures on savings in Eastern European countries," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 10, pages 93-114, June.
    15. Miguel Sánchez-Romero, 2013. "The role of demography on per capita output growth and saving rates," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1347-1377, October.
    16. Rajendra Prasad Shrestha Ph. D., 2008. "Private Savings Behaviour in Nepal: Long-term Determinants and Short-run Dynamics," NRB Economic Review, Nepal Rastra Bank, Research Department, vol. 20, pages 16-31, April.
    17. Vighneswara Swamy & Munusamy Dharani, 2020. "Thresholds of financial development in the Euro area," The World Economy, Wiley Blackwell, vol. 43(6), pages 1730-1774, June.
    18. Zafar Iqbal, 1993. "Institutional Variations in Saving Behaviour in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 1293-1311.
    19. Park, Daekeun & Rhee, Changyong, 2005. "Saving, growth, and demographic change in Korea," Journal of the Japanese and International Economies, Elsevier, vol. 19(3), pages 394-413, September.
    20. Taguchi, Hiroyuki, 2021. "A revisit to effects of demographic dynamics on economic growth in Asia," MPRA Paper 110609, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:16:p:4349-:d:256868. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.