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E-Commerce Development and Household Consumption Growth in China (English)

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.

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Citation

Luo,Xubei Wang,Yue-000541442 Zhang,Xiaobo

E-Commerce Development and Household Consumption Growth in China (English). Policy Research working paper,no. WPS 8810 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/146951554905409975/E-Commerce-Development-and-Household-Consumption-Growth-in-China