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By Zhou Lingling, Institute of Public Administration and Human Resources, DRC; Liu Huang, Guangzhou University; Zhao Yiting, Renmin University of China

Research Report, No.69, 2021 (Total 6134) 2021-3-24

Abstract: Digital economy plays a positive role in accelerating consumption upgrading and promoting the consumers’ consumption structure from a daily-necessity-oriented pattern to a leisure-and-extra-need-driven pattern. However, the effects of digital economy on consumption upgrading show heterogeneity in different regions in China, and the groups of consumers benefiting from significant positive impacts on the consumption upgrading are mainly in southern China and urban areas and among those with high income and better education. In line with the mechanism analysis, it is mainly the enhancement of payment convenience for the consumers, the increased mutual trust between parties of transactions, and the demonstration effects of the digital network that unleashed the potential of digital economy in promoting consumption upgrading. In the process of advancing the development of domestic market and establishing the new development pattern, attention is needed in focusing on the positive role of digital economy in comprehensively promoting the consumption with efforts to accelerate digital industrialization, industrial digitization and digital governance. Further work is needed to strengthen the digital construction in rural areas, northern and mid- and western parts of China. Besides, the digital literacy and competency of the whole nation needs to be improved, personal information protection needs to be intensified, and payment safety calls for further enhancement. In the meantime, the multi-level social security system needs to be enhanced so as to fully release the digital dividend.

Keywords: digital economy, consumption upgrading, digital dividend