Research on the Digital Economy and Consumption Upgrade of Residents

Abstract

Amidst the global digitalization wave, the digital economy is no longer an auxiliary factor for economic growth, but a core factor, profoundly influencing Chinese consumer behavior. However, existing research exhibits deficiencies in systematically elucidating the mechanisms of impact and dissecting regional and group disparities. Based on the achievements made both domestically and internationally over the past decade, this paper focuses on exploring how the digital economy influences the consumption upgrading of Chinese residents. Through a literature review, this paper systematically analyzes the pathways through which the digital economy impacts residents' consumption upgrading, from the supply side, such as transforming production methods, fostering emerging business forms, and driving industrial upgrading, and from the demand side, such as changing consumption concepts and behaviors, raising income levels, and providing consumer credit support. Meanwhile, it delves into the heterogeneous characteristics among urban and rural areas, different regions, and various groups, and elaborates on their impact effects based on multidimensional empirical data. The study finds that the digital economy promotes consumption upgrading through multiple paths, exhibiting significant heterogeneity, with industrial upgrading and marketization level playing a mediating role. The conclusions provide theoretical support and practical guidance for policy formulation, aiding in the unleashing of consumption potential.