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Online Consumption and Income Efficiency: Evidence from China

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  • Shunfeng Song
  • Quan Sun

Abstract

Online shopping has becomes more and more popular in China largely due to the convenience and competitive prices of online products and services. This paper discusses fours issues related to online shopping. Using data from the Chinese Household Financial Survey 2013 and 2015, we find that online shopping is a more common practice for higher income earners, youngsters, women, married couples, better educated citizens, urban residents, and smartphone users. Online consumption is affected by similar factors. We observe the concavity of income on household total consumption and money savings due to online shopping. We conclude that online shopping improves the income efficiency on household total consumption. Using smartphones does not promote total consumption, although it increases online consumption.

Suggested Citation

  • Shunfeng Song & Quan Sun, 2020. "Online Consumption and Income Efficiency: Evidence from China," Chinese Economy, Taylor & Francis Journals, vol. 53(6), pages 465-476, November.
    • Handle: RePEc:mes:chinec:v:53:y:2020:i:6:p:465-476
    DOI: 10.1080/10971475.2020.1792068
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