Research On The Influence Of Resident Leverage Rate On Consumption Upgrading

It is an important national strategy of China to stimulate domestic demand,promote consumption,smooth domestic cycle and promote domestic and international double cycle.Promoting consumption upgrade is an important content of government’s economic work.It will promote economic transformation and sustainable development from the release of consumption potential.In the process of continuous heating and upgrading of resident consumption,resident leverage rate is also continuing to rise rapidly,it is necessary to optimize and maintain reasonable leverage rate to promote the improvement of household consumption level and the improvement and upgrading of consumption structure.Through theoretical analysis,it was found that the influence of household credit leverage on consumption upgrading occurs in two ways:promoting consumption scale by using debt to increase current income and promoting consumption structure upgrading by playing a guiding role in household consumption category and structure.However,the excessive debt burden will have an impact on the liquidity and wealth of residents,which may slow down the upgrading of residents’ consumption or even inhibit residents’ consumption.On the basis of theoretical analysis,this paper calculated the current level of China’s resident leverage ratio and consumption upgrading,and found that China’s resident leverage ratio shows a trend of increasing year by year from 2010 to 2020.Both the consumption level and consumption structure of residents were in constant upgrading.Through empirical analysis,it was known that residents’ consumption upgrading was affected by various factors.The increase of resident leverage ratio played a significant role in promoting the upgrading of resident consumption level and resident consumption structure,but different levels of resident leverage ratio had different effects on the upgrading of resident consumption.To maintain a reasonable household leverage ratio to promote consumption upgrading,some suggestions were put forward,including deepening reform to promote economic development,shaping a good environment for promoting consumption upgrading,encouraging the development of short-term consumer credit,appropriately regulate the supply of medium-and long-term loans,reasonable credit tilt,stimulate the western and rural areas consumption upgrade potential.