Research On The Impact Of Internet Development On The Consumption Structure Of Urban And Rural Residents

In recent years,the fundamental role of consumption in economic development has steadily increased,and it has become the first driving force for China's economic growth.The Internet continues to penetrate into social and economic activities and is gradually becoming an important factor affecting consumption.Internet development improves residents' purchasing power by increasing residents' income and reducing costs.Internet development has better satisfied consumer demand and improved consumer consumption structure by reducing information asymmetry and providing diversified distribution channels and purchasing methods.Through the research on the consumption structure in the Internet background,this paper finds the existing problems and obstacles in the upgrading of consumption structure,and finds effective and effective paths and countermeasures for the optimization of future consumption structure.This paper analyzes the impact of Internet development on the consumption structure of urban and rural residents from both theoretical and empirical perspectives,and analyzes the changes in the consumption structure of the Internet under the development of the Internet.By combing relevant theories and literatures,this paper analyzes the current situation of urban and rural residents' consumption in China,and expounds the consumption status under the background of the Internet.On this basis,the income mechanism,cost effect and matching effect are used to analyze the influence mechanism of Internet development on the consumption structure of urban and rural residents,and the consumption differences between urban and rural residents and residents of different economic development levels are analyzed.In the empirical part,this paper collects data from 30 provinces(excluding Hong Kong,Macao and Taiwan,and Tibet)from 2005 to 2016,and uses fixed-effect panel data with ridge regression method to test the impact of Internet development on the upgrading of residents' consumption structure and distinguish between urban and rural areas.In different situations,and based on the full sample analysis,the impact of Internet development on the consumption structure is analyzed based on the time-separated samples and Engel's coefficient,in order toobtain more discoveries.Based on the above analysis,the conclusions of this paper are as follows: First,in2005-2016,Internet development generally promoted the upgrading of rural residents' consumption structure,but had little effect on the upgrading of urban residents' consumption structure.Second,the development of the Internet has certain differences in the impact of urban and rural residents' survival,enjoyment,and development-oriented consumption structure upgrades.Third,the impact of Internet development on the upgrading of urban and rural residents' consumption structure has shown a certain stage.Fourth,residents with a Engel coefficient of less than or equal to 40% in rural areas have a greater degree of improvement in the consumption structure in the context of Internet development.Based on the above conclusions,this paper proposes relevant policy recommendations to accelerate the effective connection between Internet development and consumption structure upgrading.