Theoretical Logic and Empirical Facts of Consumption Structure Upgrade and Domestic Value Chain Circulation under the New Development Pattern

Abstract Under the new development pattern, this paper explores the characteristic tendencies and intergenerational changes of consumption structure upgrade (CSU) as well as the theoretical logic and empirical paradigm affecting the domestic value chain circulation. This paper constructs a region-industry decomposition framework for domestic value chain circulation based on backward demand to explore the impact of CSU on domestic value chain circulation. The results show that: first, CSU can optimize the structure of domestic value chain circulation and strengthen inter-regional value chain linkage; second, CSU promotes domestic value chain circulation through innovation drive, resource optimization and industrial coupling; finally, the domestic value chain circulation effect caused by CSU may be constrained by market segmentation, and accelerating regional economic integration across a country can help build up the main position of domestic value chain.