Continuation of the reform and opening-up policy in China in the 21st century in the focus of transformation of the mechanism of household budgetary decisions
Subject. The article considers features of the second stage (since 2000) of the reform and opening-up policy implementation in China, specifically, household income, expenditure, and investment decisions. Objectives. The focus is on the analysis of problems relevant to Chinese households, like population aging, rapid pace of digital transformation of the economy, and on the assessment of the impact of China's foreign policy on living standards. Methods. The study draws on methods of statistical analysis. Results. The study shows that measures aimed at changing the way households are registered in urban and rural areas, the higher education reform, large-scale marketization of medical care, commercialization of housing construction, and China's accession to the World Trade Organization have provided Chinese households not only with unprecedented dividends, but also with potential risks and opportunities. The key risk is the accelerated aging of the population, which requires households to spend additional money on elderly relatives. Conclusions. To maximize the impact of the reform and opening-up policies, it is important to focus both on minimizing the risks caused by population ageing and on the prospects for digital transformation, which significantly affect household budget decisions. Based on foreign experience and considering the national conditions, it is necessary to develop a system for improving digital literacy for the entire population.
Keywords: reform and opening-up policy, household budgetary decision, population aging, digital transformation
References:
Chen J., Hu M., Lin Z. China’s Housing Reform and Labor Market Participation. The Journal of Real Estate Finance and Economics, 2023, vol. 67, iss. 2, pp. 218–242. URL: Link
Bello W. Deglobalization: Ideas for a New World Economy. London, New York, Zed Books Ltd., 2008, 167 p.
Clark J.D. Worlds Apart: Civil Society and the Battle for Ethical Globalization. London, Routledge, 2003, 284 p. URL: Link
Barsukov V.N. [From the demographic dividend to population ageing: World trends in the systemwide transition]. Ekonomicheskie i sotsial'nye peremeny: fakty, tendentsii, prognoz = Economic and Social Changes: Facts, Trends, Forecast, 2019, vol. 12, no. 4, pp. 167–182. (In Russ.) URL: Link
Maestas N., Mullen K.J., Powell D. The Effect of Population Aging on Economic Growth, the Labor Force, and Productivity. American Economic Journal: Macroeconomics, 2023, vol 15, no. 2, pp. 306–332. URL: Link
Luo J. Huang P., Shi L., Zhao S. Thinking on the Pattern of “9073” Old-Age Service in Shanghai. Scientific Development, 2018, no. 3, pp. 103–108. URL: Link (In Chinese)
Kefeng Y., Xiaoxia Z., Nedospasova O.P. The Impact of Digital Divide on Household Participation in Risky Financial Investments: Evidence From China. Changing Societies & Personalities, 2023, vol. 7, no. 1, pp. 113–129. URL: Link
De Blasio G. Urban–Rural Differences in Internet Usage, e-Commerce, and e-Banking: Evidence from Italy. Growth and Change, 2008, vol. 39, iss. 2, pp. 341–367. URL: Link
Jing He, Qinghai Li. Can Online Social Interaction Improve the Digital Finance Participation of Rural Households? China Agricultural Economic Review, 2020, vol. 12, no. 2, pp. 295–313. URL: Link
Li J., Wu Y., Xiao J.J. The Impact of Digital Finance on Household Consumption: Evidence from China. Economic Modelling, 2020, vol. 86, pp. 317–326. URL: Link
Mushtaq R., Bruneau C. Microfinance, Financial Inclusion and ICT: Implications for Poverty and Inequality. Technology in Society, 2019, vol. 59. URL: Link
Shen Y., Hu W., Zhang Y. Digital Finance, Household Income and Household Risky Financial Asset Investment. Procedia Computer Science, 2022, vol. 202, pp. 244–251. URL: Link
Di Maggio P., Hargittai E. From the 'Digital Divide' to 'Digital Inequality': Studying Internet Use as Penetration Increases. Princeton University, School of Public and International Affairs, Center for Arts and Cultural Policy Studies, Working Papers, 2001, no. 47. URL: Link
