FINANCIAL DEVELOPMENT, INCOME STRUCTURE AND URBAN RESIDENTS' CONSUMPTION STRUCTURE IN CHINA

This paper using 2003-2012 provincial panel data, based on ELES and panel data model, studying the impact of financial development level on the consumption structure of urban residents in China. Studying find: first the consumption structure of the western region lags behind the eastern region; second, the influence of financial development level on the different types of family income and different types of consumption of urban residents' family is different, the promoting effect of financial scale on the consumption elasticity of wage income is almost identical in each consumer category; Third, the phenomenon of "financial repression" exists in the consumption of operating income on household equipment and services. The research results have good policy implications for China to use financial development to improve the consumption structure and expand domestic demand.