Can Internet Business Model Promote Durable Goods Consumption? A Quasi-Natural Experiment Based on the Exemplary Project of Boosting E-Commerce in Rural Households

Abstract

The rapid popularization of digital technology in China has accelerated the transformation of residents’ consumption patterns. Based on the survey data of fixed observation points in rural areas throughout the country from 2010 to 2018, this paper treats the “comprehensive exemplary project of boosting e-commerce in rural areas” as a quasi-natural experiment and employs a staggered DID specification to analyze the impact of e-commerce on rural households’ durable goods consumption. We find that e-commerce business model significantly increases the consumption of durable goods in rural areas, and this effect is more prominent for rural households in central provinces and with less-educated or younger family members. Further mechanism analyses show that the effect functions through increasing consumption capacity, lowering consumption thresholds, and increasing consumption willingness.

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