The Development of Digital Economy Boosts Consumption Upgrading

Abstract

The rapid development of digital economy has had a tremendous impact on China's economic structure and residents' lives. Based on the macro vision of accelerating the construction of a new development pattern, expanding domestic demand and boosting consumption upgrading are the current and future policy orientations for a long time. Therefore, on the basis of theoretical analysis, based on the data of China Digital Economy Index and China Family Panel Studies (CFPS) from 2012 to 2018, this paper constructs a Two-way FE model to investigate the relationship between the development of digital economy and consumer consumption upgrading. The empirical research results reflect that promoting the development of digital economy can effectively promote the upgrading of residents' consumption. The upgrading of residents' consumption is mainly reflected in the improvement of consumption level, optimization of consumption structure and improvement of consumption quality. In this paper, the instrumental variable method is used to solve the potential endogenous risk, and the robustness analysis proves that the empirical results are robust for different indicators. Based on the research conclusion, this paper suggests that the relevant government departments can consider appropriate tilt of resources to promote the development of the local digital economy, accelerate infrastructure construction, strengthen the training of scientific and technological talents, increase market supervision and guidance, and then play the role of digital economy in promoting consumption upgrading.