The Effect of Urbanization Quality on Resident Consumption in China

Abstract

Urbanization is an effective way to promote resident consumption. Based on the evaluation of urbanization quality in China, this paper empirically analyzes the impact of urbanization quality on resident consumption by using panel data of 30 provinces (regions) from 2005 to 2017. The results show that the improvement of urbanization quality can enhance residents' income level, change their consumption concept and improve the consumption environment, and then promote resident consumption. From sub-regional view, urbanization quality has a positive impact on resident consumption in the eastern, central and western regions, nevertheless the impact in the eastern region is most significant.