Chinese Rural Residents’ Consumption Behavior And Its Influencing Factors

Thirty years of reform and opening up, China’s economy has experienced rapid growth, with GDP of 364.52 billion yuan from 1978 to 2012 an increase of 51.62821 trillion yuan, excluding the price factor, the actual rise of 24.22 times the average annual growth rate up 9.9%. However, China’s economic growth was not reasonable growth model with high investment rates and high savings rate is the main features of the final consumption rate remains in the doldrums, according to World Bank statistics,2000-2012 years, China’s capital formation rate of 35% rose to 49%, final consumption rate from 63% down to 49%, significantly lower than the 80% of the world average consumption rate levels. Meanwhile, the consumer of the final consumption rate is also declining, from 47% in 2000 down to 35% in 2012, the "high growth, high investment, low consumption" growth mode transformation has become a major feature of the economy.Consumer demand is an important part of the total consumption in the long-term rapid growth of China’s economy in the background, the general consumer does not realize the ability to match the promotion of economic growth, although China as early as in 1998 proposed the expansion of consumer demand, "Twelve Five" more clearly the transformation of economic development mode and expand the consumer, but the consumer is still weak, the countryside, the average propensity to consume residents also fell from 0.841 in 1995 to 0.748 in 2012, and it is estimated that, when Each final consumption in rural China to achieve 100 billion yuan, the demand generated by the pulling effect on the national economy will reach 235.6 billion yuan, this, our country’s most promising consumer market in rural areas. Despite the potential, the current consumption in rural areas are faced with "start without moving" problem, compared with urban residents and rural residents per capita consumption level is generally low, as of 2012, real per capita consumption of rural residents is only 3003.36 yuan, even lower than 1995 real per capita consumption level of urban residents. What are the causes of rural residents such low levels of consumption, as well as a huge gap between urban residents’ consumption is? What are the characteristics of consumer behavior is the farmer? These behavioral characteristics to enhance the well-being of farmers have what effect? These are the key research content of this article.In this paper, based on the triple perspective-Permanent Income and uncertainties, the income gap between urban and rural areas and rural social security on the consumer behavior of Chinese rural residents, the paper is organized as follows:Chapter 1, Introduction. This chapter first describes the background and significance of thesis writing, then a brief description of the more structural arrangements, research methods of the article, the last of the article discusses the possibility of innovation and inadequacies.Chapter 2, consumption theory review and literature review. This chapter first stage of consumption according to theory development, briefly introduced since the 1930s, the Western mainstream consumer theory, including the absolute income hypothesis and relative income hypothesis, life cycle and permanent income hypothesis, the random walk hypothesis, liquidity constraint hypothesis, precautionary saving hypothesis and λ hypothesis etc., and then a more detailed description of the country in recent years on rural residents’ consumption patterns, consumer behavior characteristics and influencing factors of consumer related literature, and noted the significance of these documents and learn from differences of opinion lies.Chapter 3, the evolution of China’s consumption of rural residents and situation analysis. This chapter first summarizes the evolution of the process and characteristics of Chinese rural residents ’consumption level and consumption structure, then ELES model based on empirical analysis of farmers’ consumption structure, with an interval of five years, after investigation into the comfortable life (2000) farmers marginal propensity to consume various types of consumer demand, income elasticity of demand, the marginal budget share of changes in its characteristics, followed by the consumption level of urban residents (structure) were compared, pointing out some of the problems existing in our consumption of rural residents, rural residents for final consumption thinking of the status quo that has a habit of rural residents’ consumption characteristics, but by the uncertainty affecting permanent income, the income gap between urban and rural areas, and social security number of factors, for the follow-up study of consumer behavior based on different perspectives of farmers were foreshadowing.Chapter 4, permanent income, spending habits behavior of rural residents uncertainties Perspective. This chapter begins with an overview of five representative Western consumption habits model contains features, and then they used to enter the form of the consumption function, under general consumer habits and habits of the type and characteristics of the consumer optimal solution brief description of the problem, and finally On the basis of Alessie and Lusardi (1997)study, the consumption model extended to include the case when the external inertia and wealth, that construct contains an internal inertia, external inertia, permanent income, wealth and uncertainty in consumer model farmers, use of 2000-2012, China’s 29 provinces (municipalities and autonomous regions) 2000-2012 years of dynamic panel data empirical analysis, draw relevant conclusions.Chapter 5, the income gap between urban and rural areas under the perspective of rural residents’ consumption behavior analysis. This chapter briefly describes the evolution of self-regarding reform of the income distribution system reform and opening up, then analyze the status quo and its impact on the consumption level and consumption structure of rural residents income gap between urban and rural produce, and finally through the establishment of the income gap between urban and rural (persistent), the relative volatility of the urban-rural income, internal and external inertial integrated model farmers’ consumption decisions, the use of 2000-2012, China’s 29 provinces (municipalities and autonomous regions) 2000-2012 years of dynamic panel data and empirical analysis of the income gap between urban and rural areas of the relative volatility affect farmers’ consumption, and further test the relative stability of rural income-the interaction between the gap caused by the asymmetry of farmers’ consumption, and draw the appropriate conclusions.Chapter 6, the impact of social protection for rural residents’ consumption analysis. This chapter first reviews the development process of the reform and opening of China’s rural social security system, and pointed out that the main problems of the urban social security system by contrast, then continue to analyze the two effects on consumer generated social security-the cause and substitution effects Finally, the theoretical basis of the farmers in the consumer model includes social security coverage level and on the use of 1990-2013 in China’s rural residents’ consumption and income data to empirically test the theoretical model, confirming the effect caused by farmers in China’s social security spending greater than the substitution effect.Chapter 7, policy recommendation section. This chapter puts forward policy recommendations for the basic conclusions drawn each chapter, including establishing a scientific view of consumption, the establishment of farmers’ income in order to achieve long-term mechanism to diversify income sources and ways to narrow the income gap between urban and rural areas, accelerate the process of urbanization, a sound social security system in rural areas, is expected to reduce the uncertainty of farmers.The main conclusions of this paper proceeds as follows:(1) permanent income is still the primary factor affecting the growth of farmers’ consumption, consumption of rural residents in order to achieve growth and structural optimization and upgrading of the most important prerequisite is to achieve long-lasting and stable revenue growth; at the same time, wealth also on the rural consumption growth has a more profound impact. (2) the existence of farmers ’consumption habits obvious internal and external habit characteristics, internal inertia factor in the study year interval farmers’ consumption of about 0.3545, external inertia coefficient of about 0.3644, due to the characteristics of consumer habits, given current consumption to farmers feeling less than happy circumstances habit does not exist. (3) uncertainty in income have a significant negative impact on consumption growth in China’s rural residents, however, due to the existence of the power of habit formation, the uncertainty of the extent of influence weakened. (4) the income gap between urban and rural consumption growth of rural residents have a significant negative impact on the whole, the income gap between urban and rural lasting increase of 1 percentage point each, the farmers will reduce consumption 0.1465 percent. (5) urban-rural income stability-Gap impact on consumption of rural residents is asymmetric with respect to urban residents, while the more stable income of rural residents, changes in the relative stability established greater the impact on farmers’ income growth in consumption, the established urban-rural income the negative impact on the rural consumption gap smaller. (6) the effect caused by the rural social security for rural residents’ consumption is greater than the crowding-out effect, have long lagged behind the social security system in rural areas is difficult to improve farmers’ consumption of causation, therefore, improve, improve social security in rural areas to improve farmers’ consumption has a very important significance.