The level of trust residents hold toward others and objects within their environment not only plays a critical role in fostering a harmonious and stable rule-of-law setting but may also impact their personal consumption behaviors. Based on the data of CFPS2016, 2018 and 2020, our findings indicate that residents' trust levels significantly promote household consumption and drive consumption upgrades.  Further analysis reveals that the tendency to dine out and to shop online serve as potential mediating pathways through which trust influences household consumption. Moderation analysis shows that government administrative efficiency and internet usage positively reinforce this effect. Heterogeneity analysis suggests that the influence of residents’ trust on household consumption is particularly prominent among residents in Eastern China, high-net-worth households, and those without religious affiliations.

Jincheng Nie. Research on the Influence and Mechanism of Residents' Trust Level on Their Consumption Behavior. Academic Journal of Business & Management (2024) Vol. 6, Issue 12: 20-35. https://doi.org/10.25236/AJBM.2024.061203.

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