Research on the Relationship between Internet Finance and Domestic Consumption

摘要

In recent years, third party internet payment which is the part of Internet finance has occupied financial markets rapidly due to its own advantages of convenient payment, convenient application and time saving. Internet finance has brought the challenge to traditional finance, and at the same time, it is changing the consumers' behavior. Based on the co-integration theory of econometrics, this paper conducts an empirical research on Internet finance and domestic consumption in China. The results show that the total domestic consumption and Internet finance have a significant positive long-term equilibrium relationship. In the long term, the expansion of Internet financial scale can become the Granger cause of the change of total domestic consumption through the co-integration relationship. Therefore, Internet finance promotes the growth of domestic consumption.