The Impact Of Urbanization And Industrial Structure On Household Consumption Rate

After the reformation and opening-up,China's urbanization process has been deepening,and the industrial structure has been constantly adjusted,and the economic outlook has undergone earth-shaking changes.Along with the development of urbanization and the improvement of production level,China's rural population has gradually shifted to cities,and the labor force of the primary industry has gradually shifted to the secondary and tertiary industries,so that the industrial structure has been gradually optimized and upgraded.The deepening of the process will also increase the income level of residents,thereby increasing the consumption power of residents,promoting the consumption needs of residents,and improving the consumption level of Chinese residents.However,regarding the impact of urbanization on household consumption,both domestic and foreign theories,the degree of urbanization is closely related to the level of household consumption,but the impact of urbanization on household consumption is promoted or suppressed.Or the form of influence,scholars at home and abroad did not reach a consensus.The dynamic agglomeration effect of urban development,that is,the process of agglomeration of industry,capital and population can amplify the factors of production through a certain transmission mechanism,thereby promoting economic development.There are two kinds of agglomeration effects,namely the Marshall effect and the Jacobs effect.Both of these effects refer to the positive externalities brought about by the spatial agglomeration of production factors.In addition,in terms of industrial structure,whether the development of the secondary and tertiary industries will promote the consumption of residents,the research conclusions of different experts and scholars are not the same.The reason for the differenceis because countries have different economic stages,and social security levels,residents' consumption habits and other factors are different.Therefore,China's situation cannot completely copy foreign theories.In addition,the level of development in various regions and cities in China is not balanced.Therefore,the impact of urbanization and industrial structure on the consumption of residents in China will be different.Based on panel data of 213 major cities in China from 2005 to 2017,the paper empirically analyzes the impact of urbanization and housing prices on household consumption growth.The study found that the comprehensive level of urbanization at the national level has a significant effect on the growth of household consumption.The increase in the proportion of the secondary industry will inhibit household consumption,while the increase in the proportion of the tertiary industry will promote household consumption.In addition,we also divide the sample into eastern,central,western,and different city grades.We find that there are significant differences in the impact of population urbanization and industrial structure factors on household consumption growth in different regions and urban levels.Balancing regional development is also crucial.Based on the empirical results and China's national conditions and current situation,this paper proposes the following policy recommendations.In terms of consumption,China should establish a consumption-led development concept and increase the proportion of household income in national income distribution,thereby promoting household consumption;and further improve the level of social security,improve the social security system to mediate consumption;On the other hand,it is necessary to update the residents' consumption concept,change the traditional concept of heavy savings and light consumption habits,and change the current situation of insufficient purchasing power of residents.In terms of industrial restructuring,China should vigorously promote the accelerated development of the service industry,especially in relatively backward regions and cities;in addition,we must optimize the industrial structure,improve the quality of products and services,and thus effectively protect the legitimate rights and interests of consumers;We will comprehensively enhance China's independent innovation capability,strive to enable the state to master core and key technologies,and enhance the transformation capability of scientific and technological achievements,thereby independently innovating and upgrading the overall technical level of the industry,and promoting the optimization and upgrading of industrial structure.