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How does digital finance affect consumer online shopping: A comprehensive analysis based on econometric model

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  • Zhu, Mingxun
  • Wang, Yanping
  • Wei, Min
  • Cai, Zhen

Abstract

We construct a comprehensive analytical framework to dissect the relationship between digital finance (DF) and consumer online shopping (COS) and its transmission mechanism based on panel data of 31 Chinese provinces from 2013 to 2020, applying spatial econometrics and mediation effect model. The conclusions are as follows: DF has a positive spatial spillover effect on COS, which means that DF not only stimulates local COS, but also can stimulate COS in neighbouring regions. DF encourages consumers to spend online by increasing residents' income, improving payment convenience, easing credit constraints, and improving residents' risk management ability.

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  • Zhu, Mingxun & Wang, Yanping & Wei, Min & Cai, Zhen, 2023. "How does digital finance affect consumer online shopping: A comprehensive analysis based on econometric model," Finance Research Letters, Elsevier, vol. 54(C).
    • Handle: RePEc:eee:finlet:v:54:y:2023:i:c:s1544612323001071
    DOI: 10.1016/j.frl.2023.103734
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    2. Wang, Zhimao & Huang, Xucheng, 2023. "Understanding the role of digital finance in facilitating consumer online purchases: An empirical investigation," Finance Research Letters, Elsevier, vol. 55(PB).
    3. Shen, Yuchen & Ren, Xiaoping, 2023. "Digital finance and upgrading of industrial structure: Prefecture-level evidence from China," Finance Research Letters, Elsevier, vol. 55(PB).

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