Modern Social Science Research

Industrial upgrading is a trend in economic development, and consumption, as a hot topic and phenomenon, undoubtedly promotes industrial upgrading in its development process. Through theoretical analysis and research analysis, this article takes 31 provinces in China as research samples, collects residents' consumption levels and the proportion of added value of the tertiary industry to GDP Based on the proportion and related control variable data, it was found that the development of consumption does play a significant role in industrial upgrading. This result passed endogeneity and robustness tests. Under the control of fixed effects, it was found that there is still a threshold effect of consumption on industrial upgrading. Using household consumption level as the threshold variable, it was found that the promotion effect of consumption on industrial upgrading varies in the three different intervals of household consumption level. Overall, the promotion effect of consumption is decreasing. In addition, based on the role of consumption in industrial upgrading, this article also proposes relevant measures and policy recommendations to better grasp consumption and promote industrial upgrading.

Consumption; Industrial upgrading; Resident consumption level; Threshold effect