Consumption Rate and Industrialization:A Cross-Country Empirical Study
Consumption is an intuitive reflection of a country's economic development.This paper uses cross-country data to study the impact of the degree of industrialization,represented by the share of industrial value added,on a country's consumption rate.It is found that industrialization leads to lower consumption rates.Even if we take into account that the rise in the investment rate in the process of industrialization squeezes the rate of consumption,and the rapid decline in the share of mandatory consumer goods in the early stage of economic development,the negative impact of industrialization on the rate of consumption still exists.The mechanism analysis shows that the decline share of labor compensation in the process of industrialization is an important reason for the relative lack of consumption capacity of the population,and a more equitable income distribution structure can significantly weaken the negative impact of industrialization on consumption rates.For low-income countries,although premature de-industrialization can raise the consumption rate,cost is the slowdown of economic growth.From China's point of view,the current industrial share exceeds more than about 90％of the countries,and income equalization still has further room for improvement.As a result,in the process of economic development,it is difficult to avoid the phenomenon of low consumption rate.The fundamental improvement of China's consumption rate in the future is closely related to the improvement of the overall income level of the residents,and the continuous optimization of the income distribution system as well as the effective improvement of the efficiency and quality of investment.
万方数据
维普
