Renqing Consumption in the Digital Era: Evidence from China

In societies influenced by Confucian norms, renqing (obligational favor) consumption serves an important role in maintaining guanxi (connections) capital. The present study aims to investigate the impact of Internet access on Chinese residents’ renqing consumption. Utilising data from the China Family Panel Studies, we employ both instrumental variable and difference–in–differences methods to identify the causal relationship. Our findings robustly demonstrate a positive association between Internet access and renqing consumption. Furthermore, the mechanism analyses suggest that the facilitating effect is attributable to Internet’s role in promoting social interaction, reducing transaction cost, and influencing individuals’ attitudes towards guanxi culture. Additionally, we find that the positive impact of Internet access on renqing consumption is more pronounced in economically underdeveloped areas (central and western regions) than that in economically developed areas (eastern region). These findings complement existing literature by elucidating the mechanisms through which technology interacts with cultural traditions to shape household consumption behaviour in the digital age.