Study On The Influence Of Urban-Rural Integration Development In China To Expand The Domestic Demand

Expanding domestic demand is the grim reality for China in the process of the current and future economic and social development. In order to expand domestic demand, it is the key for us to seek so reliable and sustainable mechanisms and ways that people have demand willing and continued demand capacity. Integration of urban and rural development is an inevitable trend and target for all countries and regions, what’s more, it’s a new stage of China’s modernization and urbanization, and its essence is to mobilize all positive factors to achieve economic and social development, in order to meet the needs of urban and rural residents maximize and balanced. Therefore, the integration of urban and rural development bears essentially huge domestic space, and it grows to be the greatest potential to expand domestic demand. As a starting point to the urban-rural integration, exploring its impact on the expansion of domestic demand, it is in line with the target point of economic and social development, and it can provide a new reference for solving practical problems of insufficient domestic demand.On the basis of existing research results, this paper tries to use different research ideas and methods, systematically studies the action mechanism and the effect of the urban-rural integration on expanding domestic demand, which includes overall effect, structure effect and the effect of the area, and on the basis of this puts forward suggestions on expanding domestic demand to promote urban-rural integration.After defining the relevant concepts and theories about the urban- rural integration, the second chapter explains the mechanism of urban-rural integration influence on domestic demand expansion in two aspects by mathematical model and theoretical analysis. On the one hand, based on the integration of urban and rural population as the breakthrough point, combining the theory of urban-rural integration and production function theory to build model, from the perspective of macro and micro, rural population in towns increase the impact on the domestic demand; on the other hand, the research conclusion shows that the urban-rural integration can play a role on aggregate demand, consumption demand and investment demand in five aspects, such as urban-rural economic structure harmonization, the equal quality of life in urban and rural areas, culture and education synchronization in urban and rural areas, urban and rural ecological environment symbiosis, urban and rural area space integration and so on. This chapter is theoretical basis of the full text.After the mechanism analysis, the chapter 2 constructs the evaluation system of urban-rural integration in our country and evaluates 30 provinces and the eastern, central and western three big areas using the AHP model Ato 2003-2012 years. The evaluation results show that the level of urban- rural integration level is a trend of rising but regional differences, the eastern region of urban and rural integration level is higher, the central and western regions are relatively low, and the internal structure of urban and rural integration is unbalanced. At the same time, through the investigation about the present situation of internal demand in our country, we found that China’s aggregate demand, consumption demand and investment demand has been increasing trend, but obviously consumer demand lags behind the investment demand. Consumer demand is depressed for a long time, a declining proportion in the total demand. While the regional imbalance, investment demand is a growing trend overall. Throughout all the provinces, the total demand, consumption demand and investment demand is imbalance in change trend. This part is the objective basis of later theoretical and empirical analysis.The empirical research part includes chapter 4, chapter 5 and chapter 6. Each chapter is empirical analysis of the impact of China’s overall internal demand, consumption demand, investment demand and the influence of the constraint for urban-rural integration.1. The overall effect of urban- rural integration to expand domestic demand. Overall, the urban and rural integration and total internal demand, investment demand and different levels of consumer demand are positive correlation, the relationship between urban and rural integration can promote domestic demand. In the internal demand structure, however, because of the investment demand "crowding out" effect on consumption demand, China’s domestic demand is still a major cause of investment demand. Urban-rural integration level for government investment demand has inverted u-shaped curve characteristics, the influence of the impact on private investment demand significantly positive, indicating that the early stages of urban and rural integration, the government plays a very important role in investment demand. With the improvement of urban and rural integration level, the government investment will be less and less, enterprise or market will become the main driving force of the development of the urban and rural integration. At the same time, the level of integration of urban and rural development to improve to a certain extent offset by government investment expansion form the demand effect, cause the overall decline in investment demand effect.2. The area effect of of urban- rural integration to expand domestic demand and constraint conditions. the regional difference of the effect on urban and rural integration to expand domestic demand is obvious, the difference characteristics of present regional integration. In general, the central and eastern regional, total internal demand and consumer demand promoting effect is significant,and the investment demand effect is higher than the central and eastern government consumption demand in the western regional.Possible reason is that the data of this study is limited to recent 10 years, and this period of time, the central area of the city and countryside integration development process is accelerated, to a great extent, led to consumer demand and private investment demand. In the eastern regional, the overall development level of urban-rural integration is higher, and he gap between rural and urban areas are relatively small, this makes the area with strong consumer demand, the level of demand is higher, so the overall effect of domestic demand is bigger. Overall low level of integration of urban and rural development in western China, the government investment and consumption still plays an important role in the development of urban and rural integration.The empirical analysis conclusion on constraint conditions can explain the causes of regional differences characteristics about the effct on domestic demand of urban and rural integration.Study found that in such areas, which have high economic development level, relatively advanced industrial structure or having other comparative advantages of different economic, urban and rural integration positive promoting effect on the domestic demand is relatively good. Labor mobility, fiscal spending as a share of GDP, social security expenditure, improve macro tax burden and so on factors positively related to the overall domestic demand and consumption demand, but there is no linear relationship between these factors and positive promoting effect of urban and rural integration to expand domestic demand. With the improvement of urban and rural integration level, the size of the final accounts per capita negatively correlated with total consumer demand, which means that the government investment expansion will be compressed, consumer demand for consumption form "crowding out".3. The structure effect of of urban- rural integration to expand domestic demand. The effect is unbalanced on urban-rural integration to expand consumption demand and investment, the fusion of urban and rural ecological environment and regional integration of urban and rural space impact on consumption demand and investment demand were significantly positive, these three aspects of further integration between urban and rural areas can effectively improve the level of consumption demand and investment demand. Integration of economic development and social life in inverted u-shaped state fusion the path of expanding domestic demand. Urban and rural cultural education integration effect on investment demand and government consumption demand significantly positive, no significant impact on consumer demand.the path to expand domestic demand is U-shaped from integration of urban and rural economic development structure and life quality of urban and rural residents, and the inflection point value is relatively higher in the eastern region than others. Education-culture integration and ecological environment protection of urban-rural integration can actively promotes the expansion of domestic demand, but regional differences is obvious,the impact is significantly higher in Midwest than the Eastern region. Regional integration of urban and rural space on internal demand presents a positive role in promoting the domestic demand, and it is relatively higher in the Western region too.On the basis of theoretical discussion and empirical studies, this paper is to analyze the impact on domestic and foreign demand conditions typical of urban-rural integration model, to explore and learn from the countries and regions in the integration of urban and rural development to enhance the level of domestic demand, while striving to achieve its effects experience. Domestic and international experience shows that reasonable economic structure and industrial structure, the ecological environment and traffic network integration, promoting the development of culture and education as well as the national level science and urban and rural overall planning is the important premise to realize the integration of urban and rural areas.the region must be based on the actual situation in the area to choose the integration of urban and rural development model. In the long run, only to rely on market forces to drive the process of urbanization, the urban and rural areas to achieve a high level of overall progress, it is most beneficial to deepen the integration of urban and rural areas, the best way to achieve multi-level, stable drive results, so with to significantly improve the level of domestic demand.In order to achieve the effect of the urban and rural integration to expand domestic demand, we will further optimize the integration of urban and rural development. Based on the domestic demand expansion effect, the article puts forward policy suggestions on the development of urban and rural integration optimization:raise the level of urbanization development: reinforce the social foundation of urban-rural integration for expanding domestic demand; optimize the integration of urban and rural construction, give play to effect of the structure of expanding domestic demand; Strengthen interaction between urban and rural areas and regional integration, utilize the regional effect of urban and rural integration to expand domestic demand; Strengthen the institutional reform and innovation, expanding domestic demand to urban and rural integration effect.