Is Consumer Confidence a sensible measure of a Smart economy in emerging markets? Evidence from China

Purpose: Consumer confidence can be a driving vehicle for the betterment of an economy in any country. The study was set out to find out if consumer confidence is a sensible measure of a smart economy in emerging economies. According to the McKinsey report, Chinese consumers accounted for about 60% of the country's GDP in 2018. Design/Methodology: Using panel data from the World Bank and china national statistics database, the smart economy was proxy by innovations, logistics and entrepreneurship, while consumer confidence was proxy by consumer confidence index. We introduced control variables in our study to better control the dependent variable. Findings: We found out that consumer confidence is a sensible measure of a smart economy through innovations and Logistics while it has no significant influence on entrepreneurship. Originality: The study adds further insight to the concept of a smart economy by showing the role of consumers in developing such an economy. Evidence is provided in the study on how consumer confidence measures a smart economy being proxy by innovations, Logistics and entrepreneurship in China.