Effects Of China's Culture Industry Development On Household Consumption

Consumption, investment and exports are troika of driving economic growth. Inpost-financial-crisis era, global economy weakened continually, many Europeancountries' sovereign debt crisis erupted frequently, economic growth benefitsincluding cost advantage, demographic dividend, system bonus and so on lessenedgradually. As a result, model of China's economic growh must be transformed fromoutward-oriented to inward-oriented. China is a large consumption country with1.3billion people, which makes household consumption be fundamental force of pullingeconomic growth. However, in recent years China's household consumption ratedeclined continually, the pulling effect of household consumption on economicgrowth weakened significantly. Insufficiency of household consumption has been abig impediment to China's rapid and ongoing economic growth.Upgrading of comsumption structure is effective force of stimulating householdconsumption. Hierarchy of needs theory states that, spiritual and entertainment needswill be key demands as income increases and basic material needs of people are met.According to experiences of countries worldwide, culture consumption will growrapidly when per capita GDP exceeds3000U.S.dollars, culture consumption willoccur blowout when per capita GDP approaches or exceeds5000U.S.dollars. China'sper capita GDP reached3000U.S.dollars since2008and arrived at5000U.S.dollarsin2011. Therefore culture consumption is a hot topic of future consumption growthand key to stimulate household consumption structure upgrading. However, China'shousehold culture consumption is in a relatively low level now.Culture products and services produced by culture industry are mainly used tomeet people's spiritual and cultural needs which accords with development trend ofconsumption structure upgrading and are important vehicles to promote culturedevelopment and prosperity. Culture industry has many advantages such as low input,low consumption, strong associations, and it has been recognized by the internationalcommunity as the most growth-potential sunrise industry of21st century which is inline with development direction of industry structure upgrading. Many countriesconsider it as national strategic industry and Chinese government also lifts promotingdevelopment of culture industry to the level of national strategy.The thesis starts with enlarging household consumption, combined cultureindustry and consumption on basis of theory of relationships between production andconsumption, industry structure and consumption structure. With dual characteristicsof culture industry's economic attribute (industry attribute) and cultural attribute(ideology attribute), the thesis analyzes impact mechanisms of culture industrydevelopment on household consumption, and uses panel data of China's culture industry development and household consumption and heterogeneous stochasticfrontier model(SFA), panel modell, input-output method, partial adjustment modeland other econometric analysis to test empirically effects of China's culture industrydevelopment on household consumption. Accordingly, we puts forward relevantpolicy recommendations. The thesis includes the following sections:Chapter One is Introduction. Including research background and significance,basic ideas, research methods and innovations.Chapter Two is Relevant theories and literature review. Including conceptdefinition, relevant theories and literature review.Chapter Three is Current situation development of China culture industy andhousehold consumption. Firstly, the research analyzes culture industry developmentstatus quo from two aspects of scale and structure. Culture industry increases rapidlyand its development trend is good, but its basis is weak and the amount is small,meanwhile the internal structure, regional structure and ownership structure isirrational; Secondly, the thesis analyzes household consumption from four aspectsincluding total amount of consumption, per capital consumption, consumptionpropensity and consuming power. Tatal amount of household consumption improvescontinuously, but per capita consumption remains low. Household consumptionpropensity declined continually and is lower than most countries in the world. China'shousehold consumption power improves quickly and China has entered the ranks ofmiddle-income countries, but there's a big gap between urban and rural areas.Chapter Four is Analysis of the impact mechanisms of China's culture industrydevelopment on household consumption. Culture industry has economic attributes onbasis that its products can meet people's consumption needs, and also has specialcultural attributes because its products are culture products which are different fromthe material products and used to meet people's spiritual needs. The chapter buildsanalysis framework of the effect of China's culture industry development onhousehold consumption on basis of dual attributes of culture industry, thensystematically analyzes impact mechanisms of culture industry development onhousehold consumption.Chapter Five is Empirical analysis on the influence of China's culture industrydevelopment on household consumption. According to impact mechanisms of cultureindustry development on household consumption, the thesis makes an empiricalanalysis from three aspects containing total amount of household consumption,household consumption potentials, household consumption power. The empiricalresults show that: culture industry development can not only increase amount ofcultural products consumption but also amount of non-cultural products, which leadsto increase of total amount of household consumption. But, productivity of cultureindustry is not high, the average is50%-60%within the sample now. Demand pullingeffect and influence coefficient of culture industry on other industries is relatively large, however, role of promoting and supporting and sensitivity coefficient is small;Development of culture industry can promote effectively exploitation of householdconsumption potentials through improving household consumption structure andwillingness of household consumption, and this requires culture industry to make fulluse of culture industry's economic and cultural attributes. Development of cultureindustry can impact household consumption power by increasing society employmentamount and qualities of human capital. However, employment pulling effect ofculture industry remains to be enhanced and human capital pulling effect is still in thepreliminary stage.Chapter Six is Countermeasures of China's culture industry development basedon enlarging household consumption. The thesis puts forward corresponding policyrecommendations based on impact mechanisms of China's culture industrydevelopment on household consumption and empirical results.Chapter Seven is Main conclusions and research prospects.