Influence Of Urbanization On Rural Residents’ Consumption

Urbanization is not only a process of a country or a region to achieve the concentration of population, wealth accumulation, technology agglomeration and service agglomeration, but also a course to change the traditional way of human life, production and organization. According to the historical experience of developed countries’ urbanization, urbanization has a positive and important role in promoting social and economic development of a country or a region. Urbanization process is not only a fundamental way to transform the dual economy into unitary economy, but also an effective measure to resolve the lack of marketing demand and promote sustained and rapid economic growth.The core of urbanization is "human urbanization", which is to make the rural residents benefit more from the results of the development of urbanization and drive new rural construction. Hunan Province is located in central China, the urbanization level is not high accounting for the majority of rural population. The level of consumption, especially the consumption level of rural residents is long-term low. At present, most of the research results related to urbanization do not analyze urban and rural residents separately, but due to the presence of urban-rural dual structure, the impact of urbanization on urban residents’consumption and rural residents’ consumption is clearly different. In view of space limitations, this article only selected for the study of rural residents. I hope to promote the consumption of rural residents through the development of urbanization in our province, so as to realize the purpose of expanding domestic demand in our province.On the basis of research achievements at home and abroad, this paper tries to analyze the impact of urbanization on rural residents’consumption from two aspects which includes theoretical aspect and empirical aspect. In the aspect of theory, the impact of urbanization on rural residents’ consumption is mainly based on historical data. While in the empirical aspect, construct vector auto-regression model using impulse response function and variance decomposition analysis to analyze the impact of the consumption level of rural residents in the path and the contribution of urbanization. On the basis of theoretical analysis and empirical research, speeding up the process of urbanization so as to promote consumption of rural residents we can take measures as follows:first, establish a new urbanization patterns to leading rural consumption growth; second, launch a thorough reform of the household registration system to eliminate the institutional barriers between urban residents and rural residents; third, take advantage of urban area and increase government financial support for agriculture; fourth, optimize the industrial structure and vigorously develop urban services; fifth, improve the land transfer system in order to protect the interests of farmers; sixth, place special importance on improving rural residents’ knowledge and skills of consumption.