Internet Use And Rural Household Consumption Level

At present,China’s economy has entered a stage of high-quality development,the transformation of development models,the transformation of growth momentum and risk response have put forward higher requirements for China’s economic development,at the same time,consumption is still an important force supporting economic growth,with the rapid development of the Internet and digital economy,many emerging industries and development models have emerged,also,with the comprehensive promotion of rural revitalization,the potential power of rural consumption to drive domestic demand and economic growth can not be underestimated.Based on this background,the influence and mechanism of Internet use on rural household consumption level has important research value.Based on the research background and the analysis of existing literature,firstly,this paper finds the possible practical and theoretical problems of current Internet use and rural consumption.Secondly,based on the theoretical foundations of life cycle and transaction cost theory involved in this paper,the mechanism analysis of the direct and indirect impacts of Internet use affecting rural consumption is carried out.Thirdly,OLS,PSM and IV-2SLS are used to analyze the impact of Internet use on rural household consumption level and non-farm employment level,the test of the mediating effect of non-agricultural employment,the heterogeneity analysis of education level and age structure,and the robustness test.Finally,based on the research results,this paper makes the basic conclusions and gives targeted countermeasures and suggestions.It is found that Internet use has a significant positive impact on rural household consumption level,and the average Internet use in the same region is selected as the tool variable,and the research conclusions are still consistent.Internet use can promote the improvement of rural households’ non-farm employment,and Internet use has a positive impact on rural household consumption through the transmission of non-farm employment.The heterogeneity results showed that: firstly,in terms of the age of household heads,the positive correlation between rural household Internet use and consumption level weakened in the middle-aged group,elderly group and youth group;secondly,in terms of the education level of the head of the household,the longer the head of the household’s education,the more obvious the effect of rural households’ Internet use on consumption;thirdly,in terms of household income level,Internet use can most increase the consumption of rural households in high-income groups,while Internet use in low-income groups has the least effect on improving the consumption level of rural households;fourthly,in terms of family age structure,the positive effect of Internet use in rural households in the group with high child dependency ratio is weaker,while the Internet use has less effect on household consumption level in the group with high elderly dependency ratio.