Research On The Influence Of Household Debt On Consumption Expenditure

As one of the three troikas that drive China's economic growth,consumption plays a very important role in promoting China's economic growth.Therefore,how to stimulate consumption and expand domestic demand has always been a hot topic for scholars.In recent years,the continuous development of social economy and the further liberation of people's minds have transformed the traditional consumption concept of residents.The concept of advanced consumption and debt consumption led by young groups has gradually been recognized and accepted by people,which has deeply affected people's Consumption status.Today,the rapid development of household debt and the expansion of consumer spending have become an important part of China's economic development.In this context,it is of gr eat theoretical and practical significance to study the impact of household debt on consumer behavior.At present,the research on consumer expenditures at home and abroad mainly starts from the internal and external factors of consumers.The internal factors are mainly due to the lack of statistical analysis.The external factors also mostly study the influence of income,interest rate and security on it.The impact of household debt on consumer spending has not been deepened.Therefore,an in-depth analysis of the impact mechanism of household debt on the level of consumer spending and its economic consequences is particularly important for promoting China's economic development.Based on this,firstly,this paper uses the macro-provincial data and the 2013 China Household Financial Survey(CHFS)micro-data to verify the impact of resident debt on household consumption expenditure.Secondly,it verifies the impact of resident debt on consumer spending from the perspective of different liabilities.In order to have a more comprehensive understanding of the relationship between the two,this paper further verifies the impact of residents' debts between urban and rural areas,between regions,and different consumption on household consumption.Through empirical research,we find that:(1)Moderate liabilities of the current stage of Chinese residents help to promote consumer spending.This provides scientific and reliable empirical evidence for understanding the growth of residents' debt and consumption in recent years in China.(2)Different types of liabilities,the stimulating effect of resident debt on consumption is also different.Revenue-generating liabilities can increase household consumption levels through the appreciation of asset income levels,while consumer-type liabilities can increase consumption by increasing households' quality of life requirements.(3)Compared with urban households,rural households can achieve higher consumption levels through debts because their income levels are not high.(4)Residents in the western region can also use their liabilities to achieve a higher level of quality of life.The above two findings have a good reference value for China to formulate more comprehensive and specific economic development policies and con sumption stimulus policies to narrow the urban-rural gap and regional gap.(5)The increase in the level of residents' debt has significantly improved residents' spending power in terms of food,clothing,housing and transportation.On the other hand,it h as also increased residents' consumption expenditure on high-quality goods.This finding directly proves that the appropriate increase of residents' debt level is of great benefit to the promotion of consumption upgrading in China's market,and provides a new perspective on the liabilities of residents for the market participants to fully understand the internal motivations of consumption upgrading.