Internet Development, Spatial Spillover and Upgrading of China's Consumption Structure: A Spatial Econometrics Analysis Based on Data of 242 Cities during 2005-2016

Abstract

Based on the household survey data from 242 cities at and above the prefecture level during 2005-2016. This study evaluates changes in the upgrading of China's consumption structure, and investigates the overall and regional impacts of Internet development and spatial spillover on the upgrading of China's consumption structure using the spatial Durbin model (SDM) with time fixed effects. The results suggest that China's consumption structure remains basically stable in peiiodic changes, and there is a positive spatial correlation: China's Internet development exerts significantly promoting effects on the upgrading of residents∗ consumption structure, and there is a regional heterogeneity, namely, such effects in Eastern China and Central China are more remarkable than those in Western China; Internet development in neighboring cities has indirect effects on the upgrading of urban residents∗ consumption structure through spatial spillover effects, and there are regional differences in such effects. This study provides enlightenment for promotion of the upgrading of residents∗ consumption structure and the high-quality economic development in China.