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E-Commerce Development and Household Consumption Growth in China

Author

Listed:
  • Luo,Xubei
  • Wang,Yue-000541442
  • Zhang,Xiaobo

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.

Suggested Citation

  • Luo,Xubei & Wang,Yue-000541442 & Zhang,Xiaobo, 2019. "E-Commerce Development and Household Consumption Growth in China," Policy Research Working Paper Series 8810, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8810
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    File URL: http://documents.worldbank.org/curated/en/146951554905409975/pdf/E-Commerce-Development-and-Household-Consumption-Growth-in-China.pdf
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    Cited by:

    1. Kanbur, Ravi & Wang, Yue & Zhang, Xiaobo, 2021. "The great Chinese inequality turnaround," Journal of Comparative Economics, Elsevier, vol. 49(2), pages 467-482.
    2. Hanming Fang & Long Wang & Yang Yang, 2022. "Housing Wealth and Online Consumer Behavior: Evidence from Xiong'an New Area in China," NBER Working Papers 30465, National Bureau of Economic Research, Inc.

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