IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v19y2022i14p8819-d867173.html
   My bibliography  Save this article

Sustainable Economic Development, Digital Payment, and Consumer Demand: Evidence from China

Author

Listed:
  • Rui Zhou

    (School of Economics, Fudan University, Shanghai 200433, China)

Abstract

In this era, the global COVID-19 pandemic has hit the economy hard. In the context of great challenges to sustainable economic development, it is of great practical significance to study how digital payment can promote consumer demand and sustainable economic development. From the perspective of sustainable economic development, this paper selects panel data of various provinces in China from 2011 to 2020 to test the correlation between digital payment and consumer demand by constructing econometric models and selecting relevant indicators, so as to reveal the impact of digital payment on consumer demand and sustainable economic development. Research shows that: (1) in the context of the COVID-19 pandemic, digital payments play a special and very important role in promoting household consumption and sustainable economic development; (2) the empirical results show that digital payment has a significant positive impact on consumer demand, which indicates that digital payment has an obvious promotion effect on consumer demand; (3) further research shows that the impact of digital payment on consumer demand has obvious heterogeneity. From the perspective of regional differences, digital payment has a significant positive impact on consumer demand in the eastern and western regions, while the impact is not obvious in the northeast and central regions, even though it also has a positive impact. From the perspective of urban-rural differences, digital payment has a significant impact on consumer demand in both urban and rural areas, and this impact is greater in rural areas than in urban areas. However, from the perspective of development stage, the stage characteristics of digital payment’s impact on consumer demand in each region are not obvious, which may be caused by the short sample range. In addition, this paper also puts forward relevant suggestions for other countries to learn from.

Suggested Citation

  • Rui Zhou, 2022. "Sustainable Economic Development, Digital Payment, and Consumer Demand: Evidence from China," IJERPH, MDPI, vol. 19(14), pages 1-20, July.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:14:p:8819-:d:867173
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/19/14/8819/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/19/14/8819/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yao, Meifang & Di, He & Zheng, Xianrong & Xu, Xiaobo, 2018. "Impact of payment technology innovations on the traditional financial industry: A focus on China," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 199-207.
    2. Drew M. Anderson & Alexander Strand & J. Michael Collins, 2018. "The Impact of Electronic Payments for Vulnerable Consumers: Evidence from Social Security," Journal of Consumer Affairs, Wiley Blackwell, vol. 52(1), pages 35-60, March.
    3. Sugden, Robert & Wang, Mengjie & Zizzo, Daniel John, 2019. "Take it or leave it: Experimental evidence on the effect of time-limited offers on consumer behaviour," Journal of Economic Behavior & Organization, Elsevier, vol. 168(C), pages 1-23.
    4. David B. Gross, 2002. "An Empirical Analysis of Personal Bankruptcy and Delinquency," The Review of Financial Studies, Society for Financial Studies, vol. 15(1), pages 319-347, March.
    5. Dilip Soman & Amar Cheema, 2002. "The Effect of Credit on Spending Decisions: The Role of the Credit Limit and Credibility," Marketing Science, INFORMS, vol. 21(1), pages 32-53, September.
    6. Chara Vavoura & Ioannis Vavouras, 2022. "Sustainable economic development in the European Union and COVID-19," Evolutionary and Institutional Economics Review, Springer, vol. 19(1), pages 449-467, April.
    7. Zhou, Guangyou & Zhu, Jieyu & Luo, Sumei, 2022. "The impact of fintech innovation on green growth in China: Mediating effect of green finance," Ecological Economics, Elsevier, vol. 193(C).
    8. Yamamori, Tetsuo & Iwata, Kazuyuki & Ogawa, Akira, 2018. "Does money illusion matter in intertemporal decision making?," Journal of Economic Behavior & Organization, Elsevier, vol. 145(C), pages 465-473.
    9. Vondolia, Godwin K. & Navrud, Ståle, 2019. "Are non-monetary payment modes more uncertain for stated preference elicitation in developing countries?," Journal of choice modelling, Elsevier, vol. 30(C), pages 73-87.
    10. Shefrin, Hersh M & Thaler, Richard H, 1988. "The Behavioral Life-Cycle Hypothesis," Economic Inquiry, Western Economic Association International, vol. 26(4), pages 609-643, October.
    11. E. S. Phelps & R. A. Pollak, 1968. "On Second-Best National Saving and Game-Equilibrium Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 35(2), pages 185-199.
    12. David, Bounie & Abel, François & Patrick, Waelbroeck, 2016. "Debit card and demand for cash," Journal of Banking & Finance, Elsevier, vol. 73(C), pages 55-66.
    13. Zhao, Min & Hsu, Minchung, 2012. "China's economic fluctuations and consumption smoothing: Is consumption more volatile than output in China?," China Economic Review, Elsevier, vol. 23(4), pages 918-927.
    14. Cao, Jing & Ho, Mun S. & Hu, Wenhao & Jorgenson, Dale, 2020. "Estimating flexible consumption functions for urban and rural households in China," China Economic Review, Elsevier, vol. 61(C).
    15. Gérard P. Cachon & Robert Swinney, 2011. "The Value of Fast Fashion: Quick Response, Enhanced Design, and Strategic Consumer Behavior," Management Science, INFORMS, vol. 57(4), pages 778-795, April.
    16. Zhao, Da & Wu, Tianhao & He, Qiwei, 2017. "Consumption inequality and its evolution in urban China," China Economic Review, Elsevier, vol. 46(C), pages 208-228.
    17. Park, JungKun & Ahn, Jiseon & Thavisay, Toulany & Ren, Tianbao, 2019. "Examining the role of anxiety and social influence in multi-benefits of mobile payment service," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 140-149.
    18. Li, Jie & Wu, Yu & Xiao, Jing Jian, 2020. "The impact of digital finance on household consumption: Evidence from China," Economic Modelling, Elsevier, vol. 86(C), pages 317-326.
    19. Shiyi Chen, 2020. "What Implications Does COVID-19 Have on Sustainable Economic Development in the Medium and Long Terms?," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 15(3), pages 380-395, September.
    20. Jinkins, David, 2016. "Conspicuous consumption in the United States and China," Journal of Economic Behavior & Organization, Elsevier, vol. 127(C), pages 115-132.
    21. Lashitew, Addisu A. & van Tulder, Rob & Liasse, Yann, 2019. "Mobile phones for financial inclusion: What explains the diffusion of mobile money innovations?," Research Policy, Elsevier, vol. 48(5), pages 1201-1215.
    22. Sydney Ludvigson, 1999. "Consumption And Credit: A Model Of Time-Varying Liquidity Constraints," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 434-447, August.
    23. Bechlioulis, Alexandros P. & Brissimis, Sophocles N., 2019. "Consumer debt non-payment and the borrowing constraint: Implications for consumer behavior," Journal of Banking & Finance, Elsevier, vol. 101(C), pages 161-172.
    24. Petach, Luke A. & Tavani, Daniele, 2021. "Consumption externalities and growth: Theory and evidence for the United States," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 976-997.
    25. Guangyou Zhou & Lian Liu & Sumei Luo, 2022. "Sustainable development, ESG performance and company market value: Mediating effect of financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3371-3387, November.
    26. Arango, Carlos & Huynh, Kim P. & Sabetti, Leonard, 2015. "Consumer payment choice: Merchant card acceptance versus pricing incentives," Journal of Banking & Finance, Elsevier, vol. 55(C), pages 130-141.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carol C. Bertaut & Michael Haliassos, 2001. "Debt Revolvers for Self Control," University of Cyprus Working Papers in Economics 0208, University of Cyprus Department of Economics.
    2. Li, Jiayi & Luo, Sumei & Zhou, Guangyou, 2023. "Electronic payment, natural environment and household consumption: Evidence from China household finance survey," International Review of Financial Analysis, Elsevier, vol. 85(C).
    3. Zhou, Xianbo & Sun, Yucheng & Tao, Ying, 2023. "Does Digital Finance Upgrade Trickle-down consumption effect in China?," Economic Modelling, Elsevier, vol. 118(C).
    4. Wang, Mei & Rieger, Marc Oliver & Hens, Thorsten, 2016. "How time preferences differ: Evidence from 53 countries," Journal of Economic Psychology, Elsevier, vol. 52(C), pages 115-135.
    5. David B. Gross & Nicholas S. Souleles, 2000. "Consumer Response to Changes in Credit Supply: Evidence from Credit Card Data," Center for Financial Institutions Working Papers 00-04, Wharton School Center for Financial Institutions, University of Pennsylvania.
    6. Schulz, Jan & Mayerhoffer, Daniel M., 2021. "A network approach to consumption," BERG Working Paper Series 173, Bamberg University, Bamberg Economic Research Group.
    7. John Bagnall & David Bounie & Kim P. Huynh & Anneke Kosse & Tobias Schmidt & Scott Schuh, 2016. "Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data," International Journal of Central Banking, International Journal of Central Banking, vol. 12(4), pages 1-61, December.
    8. David Laibson & Andrea Repetto & Jeremy Tobacman, 2000. "A Debt Puzzle," NBER Working Papers 7879, National Bureau of Economic Research, Inc.
    9. Liu, Dongwang & Yang, Ziqi, 2024. "Asymmetric linkages among fintech, oil prices, governance, and growth in Southeast Asian economies," Resources Policy, Elsevier, vol. 88(C).
    10. Yaqoob, Tanzeela & Maqsood, Arfa, 2024. "The potency of time series outliers in volatile models: An empirical analysis of fintech, and mineral resources," Resources Policy, Elsevier, vol. 89(C).
    11. Henry, O. & Messinis, G. & Olekalns, N., 1999. "Rational Habit Modification: the Role of Credit," Department of Economics - Working Papers Series 729, The University of Melbourne.
    12. Shy, Oz, 2021. "Cashless stores and cash users," Journal of Policy Modeling, Elsevier, vol. 43(3), pages 622-638.
    13. B. Douglas Bernheim & Debraj Ray & Şevin Yeltekin, 2015. "Poverty and Self‐Control," Econometrica, Econometric Society, vol. 83(5), pages 1877-1911, September.
    14. David B. Gross & Nicholas S. Souleles, 2001. "Do Liquidity Constraints and Interest Rates Matter for Consumer Behavior? Evidence from Credit Card Data," NBER Working Papers 8314, National Bureau of Economic Research, Inc.
    15. Burak Can & Orhan Erdem, 2013. "Income groups and long term investment," Economics Bulletin, AccessEcon, vol. 33(4), pages 3014-3022.
    16. Zhang, Jiaping & Zhang, Huirong & Gong, Xiaomei, 2022. "Mobile payment and rural household consumption: Evidence from China," Telecommunications Policy, Elsevier, vol. 46(3).
    17. Bernheim, B. Douglas, 2002. "Taxation and saving," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 18, pages 1173-1249, Elsevier.
    18. Eduard Marinov, 2017. "The 2017 Nobel Prize in Economics," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 117-159.
    19. Daniel R. Cavagnaro & Gabriel J. Aranovich & Samuel M. McClure & Mark A. Pitt & Jay I. Myung, 2016. "On the functional form of temporal discounting: An optimized adaptive test," Journal of Risk and Uncertainty, Springer, vol. 52(3), pages 233-254, June.
    20. Guglielmo Forges Davanzati & Andrea Pacella, 2010. "Emulation, indebtedness and income distribution: A monetary theory of production approach," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 7(1), pages 147-165.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:19:y:2022:i:14:p:8819-:d:867173. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.