Does the digital economy promote the consumption structure upgrading of urban residents? Evidence from Chinese cities

Based on the panel data of Chinese cities from 2011 to 2020, this paper studies the impact of the digital economy on urban residents’ upgrading of their consumption structure. The digital economy promotes the upgrading of urban residents’ consumption structure. Moreover, the digital economy has a more significant effect on promoting the upgrading of residents’ consumption structure in third-tier cities. The mediation effect proves that increasing disposable income and upgrading the industrial structure are crucial mechanisms. Based on pertinent findings and the development levels of various cities, this paper proposes policies to strengthen the digital infrastructure, improve residents’ income, optimize industrial structure, and establish differentiated measures.