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Does Transfer Income Promote the Upgrading of
Rural Residents’ Consumption Structure?
ZHOU Jiehong,LIANG Yuhu,JIN Yu
Abstract The upgrading of the consumption structure of rural residents holds significant impor⁃
tance for expanding domestic demand and enhancing the endogenous driving force and reliability of the
domestic circulation.Based on provincial panel data from 2000 to 2019,this paper utilizes the theories of
constant relative risk aversion utility function and Maslow’s hierarchy of needs to examine the impact of
transfer income on the upgrading of rural residents’ consumption structure and its underlying mechanism.
Furthermore,it analyzes the role of transfer income in narrowing the gap in consumption structure up⁃
grading.The results show that for every 1% increase in transfer income,the proportion of rural residents’
development-and-enjoyment-oriented consumption in total consumption will increase by 2.6%. More⁃
over,as rural residents’ disposable income rises,the impact of transfer income on upgrading their con⁃
sumption structure will gradually diminish. Transfer income promotes the upgrading of consumption
structure mainly through the channels of reducing the share of household consumption expenditure on
food,increasing the share of consumption expenditure on education,culture and recreation,and increasing
the share of expenditure on health care and medical services.Moreover,transfer income helps to reduce
the disparity in the degree of upgrading of consumption structure upgrading among rural residents with
different income levels and in different regions,particularly benefiting those with low to medium incomes
and those residing in the central and western regions.Therefore, this article proposes policy recommenda⁃
tions such as implementing differentiated transfer payment policies,strengthening support measures for
vulnerable groups,and expanding the supply of rural residents’ consumption to promote the upgrading of
their consumption structure.
Key words rural residents; upgrading of consumption structure; transfer income; consumption
gap
(责任编辑:陈万红)