Internet penetration and consumption inequality in China

Growing research shows that information technology accelerates economic growth and development, but the effect of Internet penetration on inequality is less well documented, especially about consumption inequality. On the one hand, Internet lowers transaction costs and offers equal access to online products especially beneficial for remote and poor populations, seemingly reducing inequality. On the other hand, uneven access to the Internet may increase divergences. This study examines the relationship between Internet penetration and consumption inequality. Using data from 155 counties available from 2010 to 2016 China Family Panel Studies, this study examines whether Internet penetration potentially impacts consumption inequality considering regional heterogeneity. Based on fixed‐effect models and the two‐stage least squares regressions, results suggest the Internet penetration may increase consumption inequality measured by the Gini index. Furthermore, higher education and over a certain Internet penetration rate buffer the positive impact of the Internet. In some cases, the Internet has smaller positive or even negative impacts on consumption inequality in regions with higher education levels and over threshold penetrations

Fast-expanding "online" markets in South Korea and China: are they worth pursuing?

The online shopping craze in South Korea has been ongoing for more than a decade, but in China, online shopping is currently experiencing tremendous growth, with 64 million additional shoppers per year. Consumers in Asia are among the world's most prolific online shoppers. This study explains the evolution of the online shopping market in South Korea and China. Using fast-expanding market model as an initial analytical framework and multiple case approach, we find that Chinese online shopping corresponds to the take-off stage of a successful cluster, in which significant opportunities are still present in Chinese Tier-3 and Tier-4 cities. Conversely, the South Korean online market is nearing saturation, though major foreign players are still entering this perceived lucrative marketplace