How does network infrastructure construction affect household tourism expenditures? An empirical analysis from rural China

Abstract

The impact of tourist source region’s network infrastructure in developing countries on household tourism expenditures remains inadequately understood. This study helps fill that gap by using the “Broadband China” strategy as a quasi-natural experiment, exploring the mechanisms by which the construction of network infrastructure impacts rural household tourism expenditures in China. Using the China Family Panel Studies (CFPS) data from 2014 through 2018, we found that the Broadband China strategy has made a positive contribution to rural household tourism expenditures, especially in the rural areas of central and northeastern China. In addition, we recognized that the broadening of information channels and the provision of convenient transactions are possible mechanisms of influence, with the expansion of information channels through digital networks having an especially pronounced impact. Our research results emphasize the importance of developing network infrastructure and promoting digital literacy in developing regions, in an effort to stimulate tourism demand.