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The Research on the Relationship between Consumption Downturn and COVID-19—Analysis of Survey Data from China

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  • Haozhe Shi
  • Ziming Jiao

Abstract

Under the background of COVID-19’s prevalence, this study analyzes the impact of the severity of COVID-19 on household consumption in some regions of China from an economic perspective, and introduces three variables- household income, household economic stability and consumer confidence to explore its impact mechanism. Using an online questionnaire, the research team collected data (110 women and 100 men) from a sample of 210 heads of household (or family members with a good understanding of household consumption) to analyze this problem. The results show that the higher the severity of COVID-19, the greater the reduction in household consumption. In addition, we also found that household economic stability and consumer confidence play a negative moderation role in the impact of the severity of COVID-19 on household consumption, that is, the higher the household economic stability and consumer confidence, the weaker the impact of the severity of the epidemic on household consumption.

Suggested Citation

  • Haozhe Shi & Ziming Jiao, 2023. "The Research on the Relationship between Consumption Downturn and COVID-19—Analysis of Survey Data from China," International Journal of Business and Management, Canadian Center of Science and Education, vol. 17(12), pages 1-90, February.
    • Handle: RePEc:ibn:ijbmjn:v:17:y:2023:i:12:p:90
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    References listed on IDEAS

    as
    1. Nguyen, Xuan & Chao, Chi-Chur, 2021. "Revenge consumption, product quality, and welfare," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 495-501.
    2. Acemoglu, Daron & Scott, Andrew, 1994. "Consumer Confidence and Rational Expectations: Are Agents' Beliefs Consistent with the Theory?," Economic Journal, Royal Economic Society, vol. 104(422), pages 1-19, January.
    3. 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.
    4. Taixing Liu & Beixiao Pan & Zhichao Yin, 2020. "Pandemic, Mobile Payment, and Household Consumption: Micro-Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(10), pages 2378-2389, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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