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Original scientific paper

The impact of the Internet on household consumption expenditure: an empirical study based on China Family Panel Studies data

Yang Chunfang
Zhang Yifeng
Wang Suyun

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This article empirically analyzes the impact of Internet usage on
household consumption expenditure based on the China Family
Panel Studies (CFPS) data for three periods 2014, 2016, and 2018.
The results show that Internet use significantly increases household
consumption. This boost persists after adding a series of
control variables, accounting for differences in time and region, or
changing the measurement of the main explanatory variables.
After introducing instrumental variables to overcome potential
endogeneity problems and further including the Internet use of
the financial decision maker’s spouse for a series of robustness
tests, the findings remain robust. The positive boost is even more
significant. Finally, heterogeneity analysis is conducted for different
consumption types, urban and rural areas, gender of financial
decision-makers, and use of other Internet tools.


Internet; household consumption expenditure; Chinese household tracking survey

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