How the Internet Influences the Development of Modern Market Economy

The internet has a tremendous influence on our life in modern society. It not only penetrates many aspects of people’s daily routines but also brings great changes to the world. This paper utilizes China’s economy as an example to analyze how the internet impacts economic development. The relativity between the internet and economy is analyzed through professional models. With the digital revolution of the internet, the development of the market economy will be tightly connected with the internet in the current time and future.


Internet Development Trend
In the past 10 to 20 years, the internet has been an evolving media which brought rapid growth to the marketing field directly. Almost everyone who has PC could set up personal or company websites and promote their brands. And the relevant investment is almost zero. The rule of the game has been completely changed (Xiong et al., 2016). In the current society, mobile phones are widely used, and this further pushes the boom of mobile internet.
Internet is becoming a marketing and commercial tool in this digital age. It has brought us an unimaginably huge reformation. The reason behind this is that coverage of the internet could almost reach everyone and everywhere, so our life and future will be affected correspondingly. Not only to each individual but also our organizations, work environments, families, and businesses, etc, the internet leads us to try more and experience more. In the evolution of human history, when there's efficient and close communication, there's evolutionary progress that would lead to a new stage of marketing and business. The internet age has surpassed any other times in history. There is nothing like the depth and width that the internet covers, and it makes us dizzy. In a word, the internet is instant and global (Heslop & Angell, 1994).

Global Internet Development Situation
Today, the internet has become a global trend, which the accumulated global internet users have already reached 4.5 billion at the end of 2019. In the meantime, such an ongoing growth of this trend is displayed in Figure 1 (199IT, 2020) (Chinabaogao, 2020) (MNW, 2019).
Based on the announced data from ITU, QuestMobile, China State Industry & Information Ministry, and AUS, the detailed statistics of global mobile users and global internet users is shown in Figure 2 (QuestMobile, 2017) (Economy Daily, 2018) (Chyxx, 2019). It could be easily found that there's a growing statistic trend for the number of internet users. In the meantime, the number of non-internet users is dropping.
It is shown that the internet is gradually being widely used in a worldwide range in Figure 1. In 2010, the worldwide internet penetration rate is around 29%. In 2019, the number grows to 58%. With the great expansion of both internet access and its user base, it is easy to expand a variety of businesses and strengthen the potential customer base in the market economy.
It can be found in Figure 2 that global mobile users almost balance with the number of the world population. Two billion of them use the mobile internet. From then on, the number of global mobile users has surpassed the world population every year. This is a great platform for the development of the market economy. With the increasing number of mobile internet users, the efficiency of the market economy is further improved greatly since these users could be reached out from anywhere easily. American Journal of Industrial and Business Management  Comparing to the traditional business model, the internet now becomes a simple and user-friendly platform for business and marketing promotion. Product introduction and promotion could be shown perfectly through the world wide web, computers, or mobile screens. Customers don't need to physically attend the events at the exchanging site since they can now depend on the computer or mobile network which providing the flexible exchange at home, office, and anywhere else.

Internet Development Situation in China
At the end of 2019, the number of global internet users hit a line of 4.5 billion.
And this data is particularly stunning in China when it reaches 854 million as

Internet Brings Big Changes
With the appearance of the internet, big changes have been brought to people in many aspects of our life. Here is an analysis with details.  Mobile phone users (100 Million

The Influence of the Internet on Culture and Entertainment
The internet will produce advantages and supply tools to rapidly develop several industries in the cultural and entertainment fields. The example from China will be studied below.
In the past few years, the Chinese cultural industry developed very quickly.
With the boom of China's economy, the quality and quantity of population growth, the consumption driven by the new middle class, digitization related to the increasing population, and the cultural industry of China is forecasted to surpass the USA in 2030 (Sohu, 2018

The Impact of E-Commerce Based on the Internet to a Market Economy and GDP
Because of the internet being applied in a variety of ways, it's unsurprising that buyers or sellers could save a considerable amount of cost in physical store management, employee payment, office rent, raw materials, and supplies, etc.
This definitely could lead to an increase in margin and an improvement in efficiency. According

Retail E-commerce sales revenue worldwide(Billion USD)
Retail E-commerce sales revenue worldwide(Billion USD) 3.6% 4.6% 5.4% 6.0% 6.3% 6.9%  It is found that Global E-commerce sales revenue grows quite fast in the past ten years from Figure 6. Furthermore, the E-commerce business share is increased compared to the global retail sales revenue. The function of the internet is obvious, which affects a lot in various segments of commodity circulation.
Whatever advertisement, product exhibition through VR or AR, or order placing, payment, channel development, logistics auditing, or other aspects, the internet's contribution to efficiency and effectiveness of businesses could be easily found.
In China, a similar thing is happening. However, the changing speed is much higher. Chinese E-commerce revenue growth trend and share growth rate are depicted in Figure 8 and Figure 9 (Chyxx, 2020).    From Figure 8 and Figure 9, it is clear that the Chinese internet business growth rate is much higher than in other countries. The internet will become a useful engine to enhance the market economy and GDP especially with the existence of 5G. With the tremendous growth of E-commerce, its contribution to GDP is much higher.
Through the development of the internet, the internet of things (IoT), mobile internet, big data, and cloud calculation technology, E-commerce grows rapidly.
According to the United Nations Conference on Trade and Development (UNC-TAD) forecast, the business focuses on E-commerce occupies about 30% to 40% of the entire global trade revenue. Soon, the number will continue to grow without a definite endpoint.
In 2020, the coronavirus global epidemic painfully strikes our society, leaving people with limited time to get fully prepared to face the losses in businesses.
Under this global environment, the internet displays its advantages in many aspects such as remote education based on online class, remote healthcare, online conference and financing, business contract signing through the cloud, online streaming services, etc.

Relationship between China's GDP and Internet Usage
According to the data from China State Statistics Bureau and ICT, the relationship between China's GDP and the number of internet users is demonstrated in    x-China GDP total amount(100 Billion RMB) y-China internet users(100 million) r is the correlation coefficient to describe the potential relationship. r > 0 means positive relativity; r < 0 means negative relativity; r = 0 means 0 relativity. x i means the total amount of China's GDP and i = 1, 2, …10; y i is the number of internet users and i = A further situation can be analyzed here. As the internet is being used more widely, more internet users appear. When the internet is utilized for business purposes, more market revenue could be generated correspondingly. Because of the effectiveness and efficiency of the internet, more GDP could then be expected. As a result, the positive relativity between GDP and the number of internet users is reasonable. However, the growth rate of internet users might be relatively slow due to the spreading penetration. And this could negatively impact the GDP growth and cause the bottleneck situation sometime in the future.

Summary
The internet has a tight relationship with the market economy, and GDP is one of the strongest indicators here. The research and analysis in the paper are taken only the total amount of GDP instead of per capita growth because based on the announced data from China State Statistics Bureau, China's GDP per capita has also grown from 4360 USD in 2010 to 10276 USD in 2019. As a result, the findings of the impact of the internet on per capita growth will ideally be the same.
Because of the content limit, this topic might be analyzed with more details in future articles. China's high-speed per capita growth in the past 20 years is undoubtfully a miracle.
In conclusion, the internet brings great progress to the world. And the most valuable point of the internet is not only that it creates a lot of new things and brings inspiration in different fields, but the key point is people could share more information in almost all current industries through this network. Based on the exchange of information and virtual data integration, the relevant resources could be utilized to the maximum extent. To sum up, the internet plays a significant role in the development of a successful market economy.