Residents’ income gap to consumer demand in western China since 2000 was selected as the object of study. An empirical study was conducted by using the Pannel Data model and methodology to analyze the data collected from 11 provinces and regions in Western China during 2000-2014. The findings show that urbanization in western China has a positive effect on promoting consumer demand, and the residents’ income gap is the root cause that directly influences consumer demand. On this basis, it is suggested to attract more people to settle in cities and towns and improve urbanization rate by optimizing urban layout and increasing input into urban infrastructure. Furthermore, it is necessary to narrow the residents’ income gap in western China and improve the consumer demand, so as to support the improvement of urbanization quality in western China.

Chunling Tang,Yan Mi. Empirical research on relationship of urbanization and residents’ income gap to consumer demand—Based on a Pannel Data model analysis covering the data in western China during 2000-2014 .  International Journal of New Developments in Engineering and Society (2017) Vol.1, Num.4: 1-7.

[1]Fan Jianping, Xiang Shujian. The Impact of the Urban-Rural Dual Social Population Structure on the Consumption Rate of Residents (J). Management World, 1999, (5): 35-39.

[2]Liu Zhifei, Yan Jin. The Choice of Urbanization Path from the Perspective of Residents' Consumption [J]. Urban Problems, 2004, (3): 36-39.
[3]Chen Nanyue. Research of China's Surplus Dual Economy [M]. Beijing: China Economic Publishing House, 2004:45-57. 
[4]W.A.Liews, Economic Development with Unlimited Supplies of Labor［J］.The Manchester School of Economic and Social Studies, 1954(22):139-191.
[5]W.W.Rostow, The Stage of Economic Growth ，Cambridge University Press ，1990:37-58.
[6]Krugman. Increasing Return and Economic Geography[J］.Journal of Political Economy,1991 （3）:483-499.
[7]Wang Li na. Accelerating Urbanization: Practical Choice of Starting Consumption [J]. Economic Perspectives, 2001 (9): 48-51.
[8]Li Puming. Strategic Thinking of Accelerating Urbanization and Expanding Domestic Demand [J]. Macroeconomic Management, 2009, (11): 24-27.
[9]Li Tongping ,Ni Qian. Study on the Consumption Effect of Urbanization in China [J]. Chinese Journal of Population Science, 2013 (3)19-27.
[10]Wen Xue. An Empirical Research on the Relationship of Urbanization and Consumer Demand in Western China: Based on analysis of the panel data model during 1995-2012 [J]. Consumer Economics, 2015, (4): 20-24
[11]Zhao Xi. Frontier Research Report of China's Western Development Strategy [M]. Chengdu: Southwestern University of Finance and Economics Press, 2010:165-168.
[12]Zeng Linghua. The Fundamental Way to Expand Domestic Demand at the Current Stage in China: Urbanization [J]. Economic Perspectives, 2001 (3): 49-55.
[13]Fan Wang. Consumption Condition Model and the Index of Consumption Conditions in Different Regions, Economic Research Journal, 2004 (5): 13-21.
[14]Fang Huizhen. Mechanism Analysis of the Creation of Domestic Demand by Urbanization [J]. Modern Economic Research, 2010, (3): 49-54.
[15]Xiao Wangchun. Improving the Urbanization Level and Quality of Hunan Province by Analyzing the "Double Dual Structure"[J]. Huxiang Forum, 2015, (4): 55-58