Research On The Effect Of New Urbanization Driving Residents' Consumption

As the process of modem industrial agglomeration,the process of population concentration and the process of trasformation of people's lifestyles from mainly self-sufficiency to mainly relying on the market,the expansion of the scale of consumption and the ability of peoples' consumption are inevitably stimulated greatly.As a new strategy in which population urbanization replaces land urbanization,new urbanization(NU)takes the release of the consumption potential as an important strategic objective,which had played an important role on China,s exports and investment in response to the global financial crisis,and it will continue to play the role of advancing China's sustainable economic growth.In 2017,the contribution rate of China's final consumption expenditure to GDP is 58.8%,there is still a greater room to improve the share compared with developed countries.At the same time,the level of urbanization domestically is at an accelerated stage.Therefore,it is still an important mean that NU promotes economic growth by stimulating effective consumption demand.Based on those above,the important issue of“what are mechanisms of NU driving the consumption and what are the facts of NU drives the peoples consumption?”are put forward in this research.And the question is answered by the logical clue of"Presenting a Question-Establishing a Theortical Basis-Analysing It's Mechanism-Reviewing of the Reality-Having Empirical Tests-Giving Advice to Estabilish a More Perfect System ".In theortical research,two tasks have been done:First,the connotation of NU is defined,the classical theory of consumption is sorted out and summarized,and urbanization is the inevitable result of the development of productive forces and production relations to a certain stage is concluded that the ultimate goal of which is to realize the all-round development of mankind.NU is an inevitable extension and demand of Marx's "thought of human-oriented" in China.Its core is the citizenization of peasant workers,the essence are to re-adjust the problems and the re-adapt relations of productivity and production in the process of urbanization in China,and the purpose is to enhance all the people's self-acquired feelings and happiness further.There are numerous factors influencing the consumption of peoples',and the factors that related with NU are mainly the "three major" aspects,they are income and wealth,consumption habits and public expenditure,which set the research scope of this article.Secondly,a logical reasoning has been given on the effect mechanism of how NU promotes the peoples' consumption.Theoretically,although NU is not a direct influence factor of peoples' consumption,the consumption enhancement can ben indirectly promoted by changing it.The increase of peoples' income and wealth,changes of their consumption habits and expanse public expenditure are altered in the process of NU,which will have a positive impact on peoples' consumption.Specifically,the "seven effects",such as effect of income,effect of wealth and effect of distribution from income perspective,effect of demonstration and effect of environmental from the perspective of consumption habit and effect of security and effect of induced from the perspective of public expenditure,are the basic action pathway of NU promoting peoples' consumption.This is not only the theoretical framework,but is the basis for empirical research as well.In empircical research,the causal relationship between NU and people's consumption are studied firstly in this article based on above theories.It reveals that NU is the Granger reason for the increase of consumption and the change of consumption structure in China.Futhermore,a further empirically test was done to the role of NU in promoting peoples' consumption in "seven effects".It can be seen from the perspective of income,NU promoted the increase of people's consumption by means of effect of income and effect of wealth,but the empirical conclusion of the effect of distributional is not yet clear.The research shows that:1)both the increase of income and the growth of wealth have contributed to the increase of people's consumption in China.However,the role of the consumption enhancement driven by new urbanization through effect of income and effect of wealth is still weak at present.Of course,there is a great potential for promoting effect of income and effect of wealth because the new urbanization is still in the process of construction in China.2)Narrowing the income gap through the effect of distribution is insignificant,due to the the positive coefficient and the decreasing law of marginal consumption tendency,peoples' consumption through distribution effect will have a continual positive effect in the future.It can be seen from the perspective of consumption habits,the total consumption of peoples in China shows strong internal and weak external habit formations.The NU accelerates the peoples' consumption enhancement through the effect of demonstration and effect of environmental in external habit formation.However,there are differences between consumer expenditure items.For the total consumption,NU accelerates the peoples' consumption enhancement through effect of demonstration and effect of environmental within the external habit formations,in which effect of demonstration contributes about 2/3,and effect of environmental about 1/3.For items of consumer expenditure,the NU has strengthened the consumption of food,clothing and communication in rural areas through demonstration and environmental effects while weakened the consumption of housing and household equipment,it plays a crowding-out effect.It can be seen from the perspective of public expenditure,the total public expenditure had a crowding-in effect and the reaction was greater for rural peoples than that for urban peoples.From the pathway of public crowding-in expenditure promoting consumption,the security effect and the induced effect has come into play.In the security effect,the public expenditure mainly drives the increase of peoples'consumption through the direct effect of fiscal transfer payment,but the effect of stabilizing the indirect effect is not yet clear.The inducing effect of the public expenditure through infrastructure construction to promote consumption exists in specific facilities and related consumption,such as power utilities and household appliances.The main innovations of this study are as follows:Firstly,discussing how to promote peoples' consumption by combining peoples' consumption with NU is a new perspective at the research on the motivation and focus of peoples' consumption.Secondly,relying on the urbanization and theory of consumption,the theoretical mechanism of new urbanization indirectly driving peoples' consumption is constructed in this study.As a major pathway of the "seven effects" under the "three majors",the NU promotes the consumption enhancement,which deepens and refines the theory of NU-driven pathway of consumption.Thirdly,in the empirical study,some indicative quantitative problems were solved through building a comprehensive index system,research step by step,etc.Especially the approach of the external habit effect is presented in two departments under the assumption of "two steps",which absorbed the outstanding achievements of the predecessors,and expanded the quantitative research existed on the treatment method.