Research On The Long-term Mechanism Of Expanding Consumer Demand Of China

Long-term mechanism of expanding consumer demand is one kind of economicmechanisms, which refers to the external and internal principles that guarantee thecontinuous enlargement and increase of consumption under the combined impact of aseries of policies, countermeasures and affecting factors, used to ensure the normaloperation of a long-term consumer demand and played institutional system intendedfunction. It is a systematic project and is of such features as chronicity, scalability andstandardization, etc. In recent years, China has witnessed some positive results byimplementing a series of policies to expand consumer demand, but the overall impact isstill limited. The long-term mechanism of expanding consumer demand has not yet beenestablished. In the end of2010, it is put forward for the first time in the TwelfthFive-Year Plan the establishment of long-term mechanism to expand consumer demand.Besides, the Twelfth Five-Year Plan period is also a critical moment for China toaccelerate economic restructuring, expand domestic demand and promote economictransformation. Therefore, research on long-term mechanism of expanding consumerdemand is not only a long-lasting strategic task, but also a fundamental requirement for aconsumer demand-driven economic growth.Consumer demand has been an important part of economic research. The paperanalyzed the general characteristics and main affecting factors of China's consumerdemand from the aspects of size, structure and level of consumption, based on theknowledge of literatures and theories about consumer demand, consumer economics, theway that how consumption affects economic growth and long-term mechanism ofexpanding consumer demand. Since the Reform and Opening Up Policy, China hasmaintained a rapid economic growth rate, and domestic consumption has been expanding.But consumer demand is still insufficient, and personal consumption rate is low and stilldeclining. The structure of consumption is imbalanced between urban and rural residents,household and government sectors, as well as at home and abroad. There is an evidentdifference of consumption level between different regions, urban and rural areas,residents of different ages. The pull of consumption on economy is comparatively weak.The following factors will contribute to China's consumer demand insufficiency: a relative decrease in household income, the long-term existence of dualistic economicstructure, lack of public services and the short term of consumption-boosting policies.Theestablishment of long-term mechanism of expanding consumer demand needs thesafeguard of relative economic systems, among which it is the basic condition toestablish a standard, systematic and stable consumption system, it is the key factor torelease the consumption ability, it is an important safeguard to deepen system reform,perfect consumption system,optimize consumption environment. Therefore, this paperhas put forward some suggestions in the following aspects: establish an "olive" incomedistribution structure, release the consumption potential of the elderly population andchoose a low-carbon consumption path?First, rationalize the income distribution reform. Unreasonable income distributionand the big income gap are the main reasons for an inadequate consumer demand. Thus,to establish a steady income increase mechanism and an employment guaranteemechanism are the foundation for establishing long-term mechanism of expandingconsumer demand. Furthermore, by improving the taxing system, transfer payments,public services and charity, an "olive" income distribution structure can take shape. As aresult of this, consumer expectations and consumer confidence will boom up, consumerspending power and willingness will be strengthened.Second, improve the endowment insurance system. Our empirical research on theinfluence of social endowment insurance on elderly consumption in China shows that itis helpful to optimize the allocation of endowment insurance resources and to release theelderly consumers' potential spending power.Third, foster a low-carbon consumption concept. Low-carbon consumption itselfreflects the upgrading of consumption structure as well as energy conservation andemission reduction. It is the key factor to build long-term mechanism to expandconsumer demand. By empirical studies on the relationship between consumer demandand carbon emission per capita, this paper has put forward a low-carbon consumptionconcept and advocated a low-carbon green consumption pattern which is expected topromote sustainable consumption. By exploring the relationship between resourcesconsumption and a reasonable consumption growth rate, we can optimize the structure of household consumption, improve the quality of consumption and shift the personalconsumption path from extensive to an intensive one.