Research On The Relation Between Urbanization And Domestic Consumer Demand

With the deepening of economic globalization, international market risk isincreasing, leading to the difficulty to increase exports. The speeding up ofindustrialization, modernization requires further expansion of demand of domesticmarket. This paper aims at our country urbanization and development needs of theurban and rural residents, the residents’ consumption demand change and the relationbetween them since the nineteen eighties.This paper research content mainly includes:(1)The theoretical analysis of urbanization influencing domestic consumptiondemand.(2)Using national data analyze the course of our country urbanization, comparethe differences between urban and rural consumption needs in various aspects, such aslevel, structure, market trends and characteristic, and then analyzes the influence.(3)Using national data establish VAR model between urbanization andconsumption growth, impulse response functions and variance decompositionanalysis.(4)Using provincial data establish panel data model between the consumptionrate and the urbanization rate. On the basis, put forward relevant policyrecommendations.Based on the theoretical analysis, in this paper, using statistics and quantitativeand chart analysis to reflect China’s urbanization process, using stationary testsequence, counteraction analysis and Granger causality inspection to analyze percapita consumption and urbanization, establishing models.The main conclusions of this paper include:(1)Urbanization will help improve farmers’ income, reduce rural-urban incomegap, changing consumer attitudes, to play the domestic role inpromoting consumer demand.(2)China’s current urbanization lags behind the level of economicdevelopment also lags behind the world level. Domestic consumption of urban andrural residents is not enough.. A large number of surplus rural labor force caused byurbanization lag is the root cause.(3)Compare the different influences of urbanization to urban and rural perconsumption growth. In the short term, it leads to the decline in per capitaconsumption of urban residents, and the promoting effect is not obvious. But in thelong term, it has a significant role in promoting urban and rural residents’ per capitaconsumption, especially greater on the impact of consumption growth in ruralresidents.(4)In the study of the relative impact between urbanization and consumption, wefind that it is non-linear relationship, presents obvious stages. Therefore, in differentstages, the influence of urbanization to consumption shows different forms. Usingprovincial data, the conclusion shows that not all areas are strictly followed U-shapedcurve, there may be U-shaped, inverted U-shaped in different forms.