Study On The Effect Of Urbanization On National Saving Rate And Household Consumption

Over the past 20 years,China's national saving rate has been maintained at more than 40%,and the household consumption rate dropped from 50.29% in 1980 to 35.90% in 2011.Thus high saving rate and the lack of consumption demand have become an obstructive factor for china's economy development.This paper uses multinational sample to study the impact of urbanization on national saving rate and per capita consumption,and explores the impact of urbanization on the national saving rate and per capita household consumption mechanism.The specific study is divided into three parts.Part one,by using cross-country panel data,we focus on studying the impact of urbanization on national saving rate and per capita household consumption,based on a series of control variables,such as income variables,demographic variables,uncertainty variables,financial policy variables,state dummy variables,economic structure variables,etc.The results indicate that urbanization has a significant negative effect on national saving rate and a significant positive effect on per capita household consumption.Part two,we explore the impact of urbanization on national saving rate and per capita household consumption mechanism.To the world level,the results indicate that urbanization can indirectly affect the national savings rate through economic growth,economic structure and inflation,and it also can indirectly affect per capita household consumption through economic growth and economic structure.For the developing countries,the results show that urbanization can indirectly affect the national savings rate through economic growth and inflation.For the developed countries,the results illustrate that urbanization can indirectly affect per capita household consumption through economic growth and economic structure.