Effect of Chinese industrial structure upgrading on household consumption structure: evidence from CHIP data

Abstract

Based on the data of Chinese Household Income Project (CHIP) and 117 cities in 2007 and 2013, this paper analyzed the effect of industrial structure upgrading on household consumption structure by using the ordinary least square method and quantile regression method. The following conclusions were drawn. Firstly, the upgrading of industrial structure can significantly promote the upgrading of household consumption structure. Secondly, compared with the low-level consumption structure households, the industrial structure upgrading has a stronger impact on households with high-level consumption structure. With the increase of quantile level, the influence of industrial structure upgrading on the upgrading of residents' consumption structure can gradually increase. Therefore, the government should actively promote the supply-side reform and the upgrading of industrial structure, which would be conducive to the upgrading of consumption structure.