The Empirical Study on the Different Effects on Urban and Rural Consumption by Urbanization in China



Consumption and urbanization mainly by transferring labor force are important variables in China. The article puts the two into analysis to consider the quality of the urbanization, selecting the data of urbanization rate, average consumption of urban and rural residents, using econometric tools of co-integration analysis, ECM and Granger causality test, and after that the paper finds the effects on urban and rural consumption by urbanization are extremely different: The urbanization rate has a long-term equilibrium relationship with urban residents’ consumption, but does not have this relationship with rural one. The dynamic relationship between the urban consumption and urbanization is that the former makes the latter rise up, then the two promote each other, and finally the latter makes the former go up remarkably. Further more, although urbanization influences urban residents’ consumption obviously, yet there is a delayed effect. So we should shift the production-factor-oriented urbanization model to people-oriented one, boost the supply of public goods, focus on the development of agricultural sector, increase the income of rural households to expand the consumption of rural residents and improve their qualities of lives.


Urbanization;Household consumption; Disparate impact; People-oriented urbanization

Full Text:



Cai, F., & Du, Y. (1999). Speeding up urbanization process to promote the consumption of rural and urban residents. Friends of Accounting, (12), 12.

Cai, S. F. (1999). Urbanization is the basic solution to overcome insufficient market demand. Journal of Zhongnan University of Finance and Economics, (5), 24-26.

Fujita, M., Krugman, P., & Venables, A. (2000). The spatial economy. Cambridge: MIT Press.

Li, L. J., Shen, B., & Li, Y. (2007). Considerations and countermeasures on accelerating the population urbanization to expand the domestic consumption demand. China Soft Science, (7), 30-40.

Liu, Z. F., & Yan, J. (2004). The selection of urbanization road from the perspective of household consumption. Urban Problems, (3), 36-39.

Tian, C. C. (2004). The inevitable course of tackling the problem of insufficient consumer demand. Macroeconomic Management, (8), 36-38.

Wan, Y. (2012). Empirical and mechanism study on the increase in residents’ consumption demand driven by urbanization: Based on provincial data in China from the angle of effect decomposition. Journal of Finance and Economics, (6), 124-133.

Wang, F., & Cheng, C. L. (2003). The influence of urbanization on the household consumption rate in China. Gansu Agriculture, (11), 19-20.

Zhang, P. G. (2005). Coursebook of development economics (p.650). Beijing, China: Economic Science Press.

Zhang, S. Y., & Zhou, L. Y. (2010). The empirical study on the relationship of urbanization and rural residents consumption. Journal of Agrotechnical, (11), 30-36.



  • There are currently no refbacks.

Copyright (c) 2015 Xiuli ZHANG

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Share us to:   


  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

Online Submission:

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.
  • We only use four mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:;;;

 Articles published in Cross-Cultural Communication are licensed under Creative Commons Attribution 4.0 (CC-BY).


Address: 1055 Rue Lucien-L'Allier, Unit #772, Montreal, QC H3G 3C4, Canada.
Telephone: 1-514-558 6138 
Website: Http://; Http://;

Copyright © Canadian Academy of Oriental and Occidental Culture