The Effect Of Peer-to-Peer Lending On Consumption Behavior Of Urban And Rural Residents In China

In the present economic environment,sustained and stable growth of economy has become the primary target within countries.With China into economic transformation and upgrading,the total economic output is growing and the infrastructure construction tends to be perfect.The marginal effect of investment and export on economic growth has a decreasing tendency,and its promoting function weakens.At the same time,the effect of consumption on economic growth is greatly enhanced and has become a key factor to stimulate economic growth.In order to ensure sustained and steady economic growth of China,it is necessary to expand domestic demand,spur consumer spending and accelerate the development of consumer-led economy.Among various ways of stimulating consumption,consumer credit is an important financial means to satisfy intertemporal consumption,stimulate consumption demand and broaden the consumer market.China strives to develop consumer credit to increase consumption and fuel economic growth,which is undoubtedly an excellent opportunity for Peer-to-Peer Lending.Consumers can satisfy their pre-expenditure by installment self-finance service of Peer-to-Peer Lending Platform,which achieve consumption concept of inclusive financial system and correspond with the development trend of the national consumer economy.Thus,there is huge market potential for credit consumption,and the Peer-to-Peer Lending industry should actively expand into the field of consumption loans.Firstly,this article summarized the research fruit of overseas and domestic scholars for the borrowing behavior of Peer-to-Peer Lending and the impact of consumer credit on household consumption.Secondly,it reviewed the recent epoch of Western consumption economic theory and the effect of traditional consumer credit on consumption,and teased out scholars' main points of consumption theory and mechanisms of consumer credit.Thirdly,on this basis it summarized and analyzed the impact of Peer-to-Peer Lending on the urban and rural residents' consumption.It was thought that Peer-to-Peer Lending can influence the development by increasing the development and enjoyment consumption,abating liquidity constraint and supporting credit products to squeeze out non-credit commodities.Finally,in order to establish the basic measurement model this paper combined the lifecycle and permanent income hypothesis with the liquidity constraint and the income uncertainty and considered the factor of consumption habit of the relative income hypothesis and the ? hypothesis.Before the empirical test,it described the status of the urban and rural residents consumption in China,and analyzed the development trend of Peer-to-Peer Lending andthe consumption level of urban and rural residents.Then,by modifying the basic econometric model,this paper explores the specific effect pathway of Peer-to-Peer Lending on the urban and rural residents' consumption.In the matter of empirical research,this paper studies the effect pathway of Peer-to-Peer Lending on the urban and rural residents' consumption by using Chinese provincial panel data from 2011 to 2015 and sysGMM,including the impact of Peer-to-Peer Lending on the overall consumption level,the consumption structure,relieving the liquidity constraint and reducing the income uncertainty as well as the extrusion effect of Peer-to-Peer Lending.The survey results indicated that there is differences between urban and rural residents' consumption about the specific effect pathway of Peer-to-Peer Lending.Peer-toPeer Lending can simultaneously promote the urban and rural residents' big purchases and also encourage urban residents to increase the development and enjoyment consumption and reduce the income uncertainty.Whereas,it has no significant impact on rural residents.Besides,consumer habits,liquidity constraints and the income uncertainty also have a significant impact on household consumption.