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Can Online Social Network Promote Residents’ Consumption
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Abstract:
Our research aim is to analyze the impact of rural and urban households’ online social network on their daily consumption, and tests the most important transmission mechanism—credit constraint mechanism in it, and we use the micro data sample of China Household tracking survey (CFPS) to achieve it. Furthermore, we compare the impact of formal finance and informal finance on household consumption’s differences in response. The conclusion shows that: 1) online “group culture” has formed a new type of social capital in China, and has an impact on traditional social networks; 2) there are significant regional differences in the impact of online social networks on consumer credit; 3) the improvement of credit consumption is more driven by Internet technology, and the impact of formal financial institutions on consumer spending is declining. The impact of Internet technology innovation on the improvement of household credit consumption power is constantly improving, and more and more Chinese households get consumer credit support through online social networks.
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