DOES INTERNET USAGE TIME PROMOTE HOUSEHOLD CONSUMPTION? — MICRO EVIDENCE FROM CHINA

Abstract

Adopting an instrumental-variable (IV) approach, this paper explored the potential effects of internet usage time on household consumption with data from the 2014, 2016, and 2018 China Family Panel Studies (CFPS). After completing mechanism tests, we found that longer internet usage time was linked to greater household consumption through increased engagement with online shopping, more frequent retrieval of online information, and more online socializing. Moreover, the results suggested that families living in rural areas, and central and western regions tended to consume more as their internet usage time increased.