The Study Of The Internet Consumption’s Effect On Propensity To Consume And Economic Growth

Consumption is one of the troika of economic growth. But in recent years, China’s economic development is still facing a serious problem:consumption is insufficient. In the 12th five-year period, the Chinese government have made a lot of effort to expand consumption. But compared with the developed countries, China’s current consumption as a share of GDP is still low, the consumption of pulling effect on economic growth remains to be further strengthened. Since the 21st century, the development of China’s Internet construction developed by leaps and bounds, both in the basis of Internet resources and Internet penetration has improved. But with the development of the Internet, through the Internet consumer shopping way has also been accepted by more and more people. The Internet consumption provided the new power to explore the potential of household consumption, to improve residents’propensity to consume, to improve the consumption structure, to optimize the economic development. This article from the perspective of the Internet, with the Internet consumption as the research key, explore new ideas to stimulate consumption, expanding domestic demand.This article using the theory of applying the total demand of western economics and the consumption function theory, to study the relationship between the Internet consumption and residents’propensity to consume, and economic growth, reveals the Internet consumption for residents’propensity to consume and the effect on economic growth and its transmission mechanism. On this basis, using the empirical methods to demonstrate and inspect the relationship between China’s Internet consumption, consumption tendency and economic growth, and accordingly put forward policy recommendations to promote the Internet consumption, stimulating consumer demand to achieve sustainable economic growth.Through theoretical and empirical analysis, this paper proves that the development of Internet consumption is helpful to improve residents’marginal propensity to consume, activate the residents’consumption potential, increase the residents’consumption and promote economic growth in the short term, but in the long run, the effect will gradually weaken. In terms of China faces the reality of domestic consumer demand, to promote the Internet consumption to stimulate consumer spending, stimulating domestic demand, and promote economic growth has obvious positive effect.