A Study On The Influence Of Consumption Credit On Residents’ Consumption Upgrading

As one of the "troika" driving economic growth,consumption is becoming more and more prominent in the overall national economic development and is the first choice to drive economic development.As a tool to stimulate consumption,consumer credit was initially launched in China with little scope and intensity,and did not develop as smoothly as in Western developed countries.In recent years,consumer credit in China has entered a period of rapid development,while at the same time,the consumption level of Chinese residents has been rising and the consumption structure has been gradually optimized.In this paper,we study the relationship between consumer credit and consumer upgrading in the context of the rapid development of consumer credit and the continuous upgrading of residents’ consumption.This paper firstly collates relevant literature and introduces the concepts as well as theories involved in this paper,followed by an analysis of the development status of consumer credit and consumer upgrading.Then this paper uses panel data of 31 provinces in China and constructs a consumption upgrading index based on the AIDS model.Again,this paper uses quantile regression models to explore the impact of consumer credit on consumption upgrading at both consumption level and structure levels,and conducts robustness tests by transforming the explanatory variables,using instrumental variables and transforming micro data.In addition,this paper empirically analyzes the heterogeneous effects of consumer credit on consumption upgrading of residents in different regions and urban and rural areas based on micro data.Finally,conclusions are drawn and corresponding countermeasures are suggested based on the empirical results.The empirical analysis of this paper leads to the following conclusions: first,consumer credit has a significant role in promoting the upgrading of residents’ consumption,both at the level of consumption and at the level of consumption structure.It indicates that the development of consumer credit can promote residents’ consumption.Second,based on quantile regressions,it is found that there are significant cohort characteristics of the impact of consumer credit on residents’ consumption expenditure for residents at different consumption levels.Among them,consumer credit significantly promotes the consumption of people at low consumption levels,and the impact of consumer credit on residents’ consumption expenditure decreases with the increase of consumption levels;while for residents at high consumption levels consumer credit does not have a significant impact on their consumption expenditure.Third,there is a significant regional difference in the impact of consumer credit on residents’ consumption upgrading.The coefficient of the impact of consumer credit on residents’ consumption level in central and western regions is significantly larger than that in eastern and northeastern regions,indicating that residents in central and western regions have lower overall income levels and are more inclined to use consumer credit to secure basic consumption.And consumer credit can significantly contribute to the upgrading of residents’ consumption structure in the eastern and northeastern regions.The main reason is that residents in the eastern and northeastern regions have higher overall income levels and are more inclined to use consumer credit to achieve higher-level consumption.Fourth,there are significant urbanrural differences in the impact of consumer credit on residents’ consumption upgrading.Consumer credit can promote the upgrading of consumption levels of urban and rural residents,and the promotion effect is stronger in urban areas;meanwhile,consumer credit can significantly promote the upgrading of consumption structure of urban residents,but the impact on the upgrading of consumption structure in rural areas is not significant.