Comparative Studies on the Influence of Urbanization on the Consumption of Urban and Rural Residents in China Based on Quantile Regression

Based on cross-sectional data of China's 31 provinces in 2011,OLS regression and quantile regression are used to make a comparative analysis on the influence of certain factors including urbanization on the consumption of urban and rural residents in China. The analysis shows that urbanization exerts a significant effect on the consumption of both urban and rural residents,while the consumption of the rural residents especially those with a lower-level consumption is affected by urbanization more deeply. The study also indicates that the propensity of rural residents to consume is far lower than that of urban residents,and the consumption of rural residents is deeply affected by urban residents. Therefore,when urbanization strategy is implemented to expand residents' consumption, the differences between factors that affect the consumption of urban and rural residents should be taken into account.