Research On The Influence Of Credit Constraint On The Consumption Level And Structure Of Urban Households In China

The existence of credit constraints will lead to the increase of household precautionary savings,which will lead to the continuous decline of household consumption level and consumption growth rate.Therefore,in 1998,the people's bank of China promulgated the"guidelines on the development of personal consumption credit",aiming to ease the credit constraints on Chinese families and promote their consumption.However,in the recent years,there are some scholars point out that it is quite common that families are constrained by credit,adding the recent slowdown in the growth of China's total retail consumption which reflect that households choose to cut down their consumption expenditure due to the credit constraints.Besides,according to the national bureau of statistics'statistical data in 2017,China's urban household consumption expenditure accounts for 78.5%of the national household consumption expenditure,indicating that urban households are the main force of China's consumption.Therefore,under the above background,to study the influence credit constraints play on the urban households' total consumption level and structure,and its difference of the impact on the specific consumption expenditure of urban households is of great significance for it can more targeted ease credit constraints which could increase their consumption level and upgrade their consumption structure.Based on this,this paper mainly studies the impact of credit constraints on the consumption level and structure of urban households,aiming to explore the impact of credit constraints on the total consumption level of urban households and the difference in the impact on the specific consumption expenditure of households,and analyze whether this impact will inhibit the upgrading of the household consumption structure.In order to analyze these problems more objective and comprehensive,in this paper,first of all,we define the consumption structure and credit constraints and some related concepts.In addition,the credit constraints on households are divided into three types:"both formal credit constraints and informal credit constraints","only formal credit constraints without informal credit constraints" and "no credit constraints";Then,the effects of credit constraints on household consumption are theoretically analyzed and hypotheses to be tested are proposed.Finally,this paper selects the data of Chinese Household Financial Survey to make empirical analysis and hypothesis test.The results of empirical analysis show that:(1)the restriction of credit without any channel will reduce the consumption level of the family and restrain the upgrading of the consumption structure of the family;(2)in the credit constraints of differentiated channels,the consumption level of households subject only to formal credit constraints but not informal credit constraints will significantly reduce,but there is no significant inhibitory effect on the upgrading of the consumption structure of households;(3)both formal and informal credit constraints will significantly reduce the level of household consumption and inhibit the upgrading of household consumption structure.Based on the above study results,this paper puts forward three suggestions:first,to ease the credit supply constraints of banks;Second,develop the informal credit channel in a more reasonable way;Third,develop consumer credit for enjoying and developing commodities.