Research On The Impact Of Consumer Credit In China On Residents' Consumption Expenditure

Under the current background of China's economic restructuring,changes in the pattern of economic development,and changes in the concept of resident consumption,the consumption,as a powerful means and effective way of stimulating economic growth,has become increasingly prominent in the overall development of the national economy.This environment has also brought tremendous opportunities for the development of consumer credit in China.The development of consumer credit is conducive to the promotion of China's economy from investment-oriented to consumption-oriented,and it will increase the pulling effect of consumption on economic development,which in turn will help achieve sustainable economic development.This article first reviews related literature at home and abroad,and then uses the latest data and policies to analyze the development of China's consumer credit market.On this basis,this paper adopts the provincial panel data from 2009 to2014 in China.This paper systematically tests the relationship between consumer credit and urban residents' consumption behavior.Thus,a relatively unified and complete framework has been formed.The following are the main conclusions of this paper.First,consumer credit can significantly affect consumer spending and promote consumer spending.This shows that the scale of consumer credit resources in an area is relatively small.The effect of consumer spending was confirmed.Second,the per capita disposable income factor is the most important factor affecting the consumption expenditure of the residents.The increase in disposable income of residents is the basic guarantee for increasing their spending power.Third,this paper also studies the demographic variables.Different demographic characteristics will bring about unused consumption concepts and thus affect consumers' consumer preferences.This article finds that an increase in the family's burden factor will lead to a decline in consumption,as well as an increase in the proportion of highly educated people,which will increase current consumer spending.There are three policy implications of this article: First,expanding consumer spending can be achieved by increasing the scale of consumer credit.Consumer credit can extend monetary and credit policies to the consumption sector,establish a consumption-led economic growth model,help China to increase its propensity to consume,expand domestic demand,promote economic restructuring and optimization,and play an important role in China's economic restructuring.effect.Second,steadilyincrease the residents' expected income level and reduce the uncertainty of income brought about by the institutional transition.Credit consumption is actually a way to make future expected revenues in advance.Therefore,having a high and stable expected income is an important guarantee for the development of consumer credit.Third,change the traditional concept of consumption and actively promote credit consumption patterns.The credit consumption model is a kind of innovation in comparison with the traditional consumption concepts and consumption habits of our residents,and this kind of innovation needs to be integrated into the consumption behavior of our residents and needs a gradual process.Further,the promotion of credit consumption patterns must also closely match China's macroeconomic background,that is,only a relatively reasonable control of income uncertainties,income distribution gaps,and rising cost of large rigid expenditures.Afterwards,credit consumption may be integrated into the concept of consumption of our residents.Only after residents recognize credit consumption as a feasible and effective consumption model will the effect of consumer credit to promote consumption be fully released.