Abstract:
Based on consumption function theory and the theory of urbanization development, in this paper, the internal mechanism of how urbanization quality affects household consumption was analyzed from the perspective of income. The improvement of urbanization quality will help to increase the absolute income of residents, stabilize residents’ income expectation, and narrow the income gap between urban and rural residents, thereby promoting the expansion of household consumption. Based on the evaluation of China’s urbanization quality, the 2005-2017 provincial panel data were used to empirically analyze the impact of urbanization quality on household consumption through the role of absolute income, income expectation and income gap. The results show that urbanization quality, income and income expectation all have a significant positive effect on household consumption, and urbanization quality can strengthen the role of absolute income and income expectation in promoting household consumption. However, the effect of income gap on resident consumption is not obvious. It is suggested that more attention be paid to promoting the coordinated development of population urbanization and land urbanization, accelerating the process of agriculture modernization, and balancing the supply of high-quality public services between urban and rural areas.