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The effects of online consumer credit on household consumption level and structure: Evidence from China

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  • Jie Li
  • Quanyun Song
  • Yu Wu
  • Bihong Huang

Abstract

Using data from the China Household Finance Survey (CHFS) in 2017, this paper examines the association between access to online consumer credit and household consumption. We find that online consumer credit has a significantly positive relationship with household consumption. Heterogeneity analysis shows that the relationship between online consumer credit and household consumption is more obvious among poorer households and households resided in less developed areas, which partially reflects the inclusiveness of online consumer credit. Further analysis shows that online consumer credit mainly increases the expenditures of large‐sum and non‐daily items, which suggests that online consumer credit has promoted consumption upgrading of households.

Suggested Citation

  • Jie Li & Quanyun Song & Yu Wu & Bihong Huang, 2021. "The effects of online consumer credit on household consumption level and structure: Evidence from China," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(4), pages 1614-1632, December.
    • Handle: RePEc:bla:jconsa:v:55:y:2021:i:4:p:1614-1632
    DOI: 10.1111/joca.12390
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