4 Conclusions

Based on PVAR model, the paper empirically analyzed the differences of urbanization development between level of urban and rural consumption and consumption structure, researched and judged the “distortion” effect of urbanization on simultaneous growth of urban and rural consumption, come to following conclusions and revelations:

First, how can China’s urbanization “distort” the simultaneous growth of urban and rural residents’ consumption? From the appearance, urbanization promotes the income growth of the city but limits the income growth of rural areas. In essence, the reason for the problem is the urbanization development strategy of China’s “big city bias”, which aims to expand urban scale and economic development and will inevitably result in the imbalanced allocation of resources, and then to some extent, the phenomenon of “sacrificing” rural areas.

Second, between urban and rural urbanization, the distortion effects of “consumption” reflects that urbanization development in China has a significant imbalance in promoting their well-being to enhance the quality. Moreover, the simple pursuit of size and speed, resulted in a lot of mismatched resources. At this stage, China’s “big city bias” and “eastern coast bias” urbanization trends persist, then how to change this situation through policy making? On the one hand, we shall pay attention to promote the establishment of small towns in rural areas of central and western regions, to produce a newly combined effect through industrial transfer and entrepreneurship policy support, and to improve the income level of rural residents in essence, thus contributing to their welfare and consumption levels overall. On the other hand, we should appropriately control the scale of large cities, produce optimal city size and reasonable rhythm of urbanization, and with the internet platform to the dispersion of urban functions to rural radiation, and balanced urban and rural development.

Third, how to improve the consumption and well-being of large transferring agricultural population during the process of urbanization in the future? We believe that continuing to promote the agricultural transfer of population is the inevitable choice of public policy. Specifically, it should reverse the single economic and urban development model of urbanization, and enhance the quality and sustainability of urban development from multiple aspects such as resource allocation, social development, equality of welfare, employment equity and information networks, and therefore to promote urbanization level.