Empirical Study on Effects of Different Types of Urbanization on Consumption Structure of Rural Residents in China

Jie Huang

Asian Agricultural Research, 2017, vol. 09, issue 06

Abstract: In the process of urbanization, there are problems of decline in rural population, shrinkage of rural area, and constant increase in the per-capita net income of rural residents. These problems have brought about new characteristics and changes to the consumption structure of rural residents. This paper divided the urbanization into population urbanization, industrial urbanization and land urbanization. Using the panel data of 31 provinces in 2004-2013, it established the dynamic panel model and analyzed the effects of different types of urbanization on the consumption structure of rural residents. Results indicated that population urbanization exerts a negative effect on development-oriented consumption expenditure of rural residents, while it exerts a positive effect on enjoyment consumption expenditure; the industrial urbanization exerts a negative effect on the consumption expenditure of rural residents, while it exerts a positive effect on clothing and transportation communication consumption of rural residents; land urbanization exerts a negative effect on medical care expenditure in enjoyment consumption of rural residents. In view of these problems, it came up with recommendations, including stimulating the development of rural consumer market, liberating the consumption potentiality of rural areas, making clear emphasis points of different types of urbanization, avoiding promoting the urbanization in a blind manner, and adjusting the development of different types of urbanization on the basis of the consumption demands of rural residents.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ags:asagre:263415

DOI: 10.22004/ag.econ.263415

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