Network Economy On Promoting Household Consumption In China

As one of the three driving forces of economic growth, consumption plays animportant role in national economy operation. Since the1990s and especially theoutbreak of the International Financial Crisis in this century, Demand-Expanding forconsumers has become an important direction and goal of China’s Macro-Controls.Internet economy is a new economic form, in which producers, consumers and othermarket players engage in economic activities through the connection platform ofInternet and other information networks. With the popularization and application ofinformation technology and the rapid development of Internet, various market playersconnect with each other as a whole through networks, which has revolutionized thepattern of economy operation and market trading, and significantly improves theefficiency of resource allocation, and improve the welfare level of producers andconsumers. The development of Internet economy presents a number of challenges forthe theory of traditional economics. Compared with the traditional economicenvironment, new changes are happening for consumers’ behaviors in the interneteconomic environment.There were a lot of research and discussion on the development of Interneteconomy and the growth of consumption respectively in existing literatures. At thesame time, there were a lot of research on origins, development and influencingfactors of network consumption of residents. All these achievements provide abundantmaterials and foundations for the research of this article. However, the research ontheory combined with internet economy and consumption economy in the existingliteratures need to be strengthened. Most study abroad starting from consumers andmanufacturers of micro-economic policy-making, network characteristics and factorsinfluencing consumer behavior consumer research study manufacturers in the face ofthe popularity of network applications and channel selection diversified consumerspending situation, how changes in business strategy, obtain favorable competitiveposition. From the theoretical point of view and less change in the macro-and mesoresearch network economy era facing consumers overall consumer environment fornetwork consumption overall development of China’s population, insufficient networkand its role in promoting the economic development of mechanisms for consumerresearch it also provides space for exploration of this study.In accordance with the logical thinking form present situation to theory, and toempirical and to question and to measures finally, this article built up a researchframework for “the Promoting Affection of Internet Economic Environment to theResidents’ Consumption Demand”. Firstly, A review of the recent changes inconsumer demand for residents of our country and existing consumption-promotingpolicies were evaluated (Chapter3). Contribution rate of consumption is stillrelatively lower. Since the international financial crisis, China’s economic growth toimprove the momentum of domestic demand, the central and local governments toimplement the appliance, automotive appliances and trade and a series ofpro-consumer policy, and tap the potential of resident fee, promote the optimization and upgrading of consumption structure, thus effectively expanding the Currentconsumer demand scale urban and rural residents.From the pro-consumer policy specific effects that have been implemented, due tothe existing institutional constraints, institutional factors, many policies only achieveshort-term results, the long-term mechanism remains to be established. Of particularnote is that the existing consumer promotion policy has not fully consider theeconomic environment and attention to the profound significance of networkconsumption of the residents, the lack of long-term economic impact of the networkon the understanding of the consumer, thus facilitating policy research network basedon consumer economic environment very urgent.This article summarizes the development of Internet economy and its overallimpact on China’s economic development (Chapter4). With the popularity ofelectronic information and Internet technology, the rapid development of China’sInternet economy in recent years, the production, consumption and even public lifehave had a profound impact. Network economy has become the new engine ofChina’s economic transformation and upgrading, sustainable agriculture and industryand service coordination fusion power development, social development impetuscollaborative innovation, the development of network economy has become aneffective way of improving national competitiveness.From both macro and micro economic perspectives, this article elaborated thepromotion mechanism of Internet economic environment for consumption demandgrowth (Chapter5). From a macro perspective, the network to promote the economicdevelopment of residents’ income growth, improve consumer orientation, so that theconsumption function curve shift, the release of the consumption potential andpromoting the growth in consumer demand. From the microscopic point of view, theeconomic environment improves network consumption to achieve the conditions,reducing the consumption of implementation costs, thus changing the behavior ofconsumers in a given budget constraints, enhanced and sustained consumer spendingpower aspirations, increased consumer surplus, improve consumer welfare.The promoting affection of Internet economic development to employment andresidents income (Chapter6) reflects on: the relevant industries to enhance the labordemand, optimize the structure of employment for workers to provide a broadplatform for entrepreneurs to expand the labor factor in income distribution role inpromoting income growth.In the process of economic and social development, the consumer tendency is notconstant, but due to changes in other factors change. Network to improve theeconomic environment for the consumer propensity role reflects (Chapter7) in:At a given level of income, consumers need to achieve certain practical conditionsto realize the consumption willing. In the process of China’s economic development,various factors determine the level of consumption is not balanced growth, especiallyin some non-income factors become a bottleneck restricting consumption growth.Since market information is not sufficient, the limited purchase opportunities andother social life constraints, consumption of residents to achieve limited, the actuallevel of consumption is lower than the actual purchasing power of consumers. Network restrict consumption growth economic development makes the reality of thecondition of the residents has been significantly improved, to promote the integrationof the national consumer market and circulation system, improve the effective supplyconditions in terms of flow, logistics, capital flow, etc., changed our residents,especially residents of rural areas and backward regions consumption constrained bythe reality of trading conditions, contribute to the release of the consumer potential toimprove the residents overall propensity to consume.In the section of empirical research (Chapter8), this article selected Internetpenetration, online shopping penetration and online payment network penetration asmeasured by the independent variable economic environment, select urban residentsand rural residents’ consumption propensity to consume propensity as the dependentvariable. By these indicators in2002and2013annual data, the establishment of atime series VAR model. Model analysis showed that the level of economicdevelopment and urban network, the propensity to consume rural residents arepositively related to improve Internet penetration can promote propensity to consume,thus contributing to expand consumer demand at a given level of income. The Internetpenetration and rural residents’ consumption tendency correlation was significantlyhigher than urban residents, the network is to improve the economic conditions ofrural residents tend to consume more significant role in promoting the popularizationof the Internet in rural areas, to promote the balanced development of urban and ruralresidents consumption has important significance.This article analyzes Internet economy growing environmental constraintsconsumer issues (Chapter9), including: Internet businesses facing employmentsystem and policy "blind spots", the breadth and depth of the network is not enoughconsumer applications, consumer support system is not perfect realization, networktransactions risks and other aspects of the market order.Deal with the problems above, this article proposes to expand the network economyenvironment consumer policy recommendations (Chapter10). The governmentshould accelerate the construction of smooth coordination network to promoteeconomic development and network consumption mechanisms, including: to improvethe promotion of employment and entrepreneurship network support policies topromote and strengthen the application of consumer policy support networks, normsof the three aspects of the network market order.Through systematic research and analysis, this article draws the followingconclusion:Firstly, there is a positive correlation between the level of internet economicdevelopment and the consumption propensity. The penetration of internet and thedevelopment of Internet Economy can contribute to improving the urban and ruralresidents’ consumption propensity, thus contributing to expand consumption demandat a given level of income.Secondly, compared to urban residents, the level of Internet economic developmentis a more significant role to improve rural residents’ consumption tendency. It is veryimportant for the expansion of consumer demand in rural areas and the balanceddevelopment of urban and rural consumption to promote internet economic development in rural areas.Thirdly, compared with urban residents, the internet channel for consumers act as amore significant role to realize the potential consumer demand for rural residents andthen provides new ways and measures for the government policy practice to expandrural consumption demand.Fourthly, the consumption pattern of residents has a significant inertia. There areobvious application level gaps of internet consumption patterns between the residentsof different regions and groups. It will take a long process for internet consumptionpatterns to spread over the whole country, so the government is needed to implementappropriate policy measures to promote the process.Fifthly, the patterns of internet consumption achieved in reducing costs ofconsumption realization, but also brings a new consumer risks, which is difficult tobe settled only relying on the market mechanism by itself and need government tocompensate for market failure though the innovation of institution construction,.