The Impact Of Land Circulation On The Rural Consumption Demand In Urbanization

Low Rural consumption demand in our country has been the significant problem restricting the development of economy. Although in recent years the economy is developing steadily and fast, consumption has always been in a relatively weak position of the three essential factors to drive economic developments, the low rural consumption demand is the important reason for the overall low domestic demand in China, so stimulating rural consumption demand is the top priority of economic development in our country. In recent years, rural land circulation has been one of important points of three rural issues and urbanization development, concerning the interests of millions of farmers, and at the same time, it has great influence on the macroeconomic. The third plenary session of the eighteenth complements land system reform again, make the land circulation more freedom. In the urbanization process, this paper holds that land conversion helps to enhance land use efficiency and increase farmers’ income, leading to consumption increase. Therefore, under the background of urbanization this paper will explore the existing problems in rural land circulation and in the rural consumption of China. The relationship between will also be discussed through empirical study, so as to put forward the corresponding policy recommendations.Land lease is an important content of land circulation, therefore, this article used ordered probit model to analyse that whether land lease affect peasant household consumption rate based on the result of CHFS(Chinese household financial survey) in 2011 from the perspective of land-rent. The results showed that land lease has positive significant impact on peasants personal consumption rate, namely he greater proportion of land rent, the farmers had a higher probability of choosing a higher level of consumption rate, and the result is still robust through endogenous and robustness analysis. So, promote the rural land system reform, optimize the land circulation policy and make rural land circulation more freedom can enhance rural consumption rate, and it is of great significance for solving the long-standing domestic demand shortage problem in rural areas.