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The influence mechanism of internet finance on residents’ online consumption

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  • Wang, Xidong
  • Liu, Jing

Abstract

This study investigates the impact of Internet finance (IF)11Internet finance (IF): Traditional financial institutions and Internet enterprises use Internet technology and information communication technology to realize the new financial business model of financial financing, payment, investment and information intermediary services.on residents’ online consumption using annual data from 2013 to 2022 in China. To examine the impact of IF on overall consumption, survival, development, and enjoyment, four vector autoregressive models are constructed. This study employs comprehensive methods, including parameter estimation, impulse response function analysis, and variance decomposition. Findings reveal that the development of IF has significantly stimulated residents’ online consumption, with the increase in developmental expenditure being the most significant, followed by the increase in entertainment expenditure.

Suggested Citation

  • Wang, Xidong & Liu, Jing, 2024. "The influence mechanism of internet finance on residents’ online consumption," Finance Research Letters, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324013527
    DOI: 10.1016/j.frl.2024.106323
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    References listed on IDEAS

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    Cited by:

    1. Mu, Zi & Li, Lingxiao, 2025. "The dynamic threshold effect of internet finance on urban consumption," Finance Research Letters, Elsevier, vol. 85(PC).
    2. Rui Li & Jiaxin Shao, 2025. "Activating the longevity economy: digital literacy among older residents and household consumption structure upgrading," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-15, December.

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    Keywords

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    JEL classification:

    • G29 - Financial Economics - - Financial Institutions and Services - - - Other
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General

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