E-Commerce Development and Household Consumption Growth in China

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 develo...

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Bibliographic Details
Main Authors: Luo, Xubei, Wang, Yue, Zhang, Xiaobo
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
Online Access:http://documents.worldbank.org/curated/en/146951554905409975/E-Commerce-Development-and-Household-Consumption-Growth-in-China
http://hdl.handle.net/10986/31539
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Summary: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.