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Household Consumption and Manufactural Industrial Upgrading

In: Growth Mechanisms and Sustainable Development of the Chinese Economy

Author

Listed:
  • Dongyang Zhang

    (Capital University of Economics and Business)

  • Xinxin Ma

    (Hosei University)

  • Jun Zhang

    (Fudan University)

  • Quheng Deng

    (Chinese Academy of Social Science)

Abstract

This chapter provides direct evidence that consumption is an important driver for upgrading industrial dynamics in urban China. We study how consumption value and variations impact manufacturing industries’ TPF growth and new patents, and how this mechanism influences the private sector’s domestic consumption. The results suggest that the consumption value and variations in Chinese cities are associated with TFP growth and increased patents. This effect works through the agricultural and manufacturing industries. Furthermore, we investigate the profit rate impact and exports on industrial upgrading through consumption value and variations. The results show that the profit rate is associated with the consumption mechanism and that exports do not contribute to industrial upgrading in the domestic market. Additionally, the private sector’s share affects the consumption mechanism that benefits from new products consumption growth in the private sector.

Suggested Citation

  • Dongyang Zhang & Xinxin Ma & Jun Zhang & Quheng Deng, 2022. "Household Consumption and Manufactural Industrial Upgrading," Springer Books, in: Xinxin Ma & Cheng Tang (ed.), Growth Mechanisms and Sustainable Development of the Chinese Economy, chapter 0, pages 281-303, Springer.
    • Handle: RePEc:spr:sprchp:978-981-19-3858-0_10
    DOI: 10.1007/978-981-19-3858-0_10
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