The Effect of Urbanization on the Household Consumption Rate: Theoretical and Empirical Analysis Read
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Title | The Effect of Urbanization on the Household Consumption Rate: Theoretical and Empirical Analysis
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Author | Lei Xiaoyu and Gong Liutang |
Organization | Guanghua School of Management, Peking University |
Email | leixy10@pku.edu.cn |
Key Words | Urbanization; Agglomeration Effect; Rural Migration Workers; Household Consumption Rate |
Abstract | Based on a theoretical model which consists of multiple consumers (the city labors, the rural migrant workers and the farmers) and the city governments, this paper explains how urbanization affects Chinese household consumption rate. We also perform a regression analysis of the data from 2001 to 2010 in 176 cities. The results show that the growth of consumption rate is increased by urbanization, but decreased by the raise of urbanization speed. These relationships are different between regions according to the empirical analysis. Compared with the eastern cities, the central ones can enhance urban productivity and consumption much more by increasing their population. For eastern cities, the only way to promote the growth of consumption rate is citizenization of rural migrant workers. Our empirical works also estimate the output elasticity of urban agglomeration in China. |
Serial Number | WP569 |
Time | 2014-01-14 |
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