Research On Promoting Consumption Development Of Chinese Residents

China has achieved great success on economy since the opening up, but a world of challenges also come up nowadays. Firstly, since the income per capita is only?5680, it will take a long time to catch up with the developed countries. Secondly, the growth pattern in the past thirty years considerably depended on low-cost production. With the coming of the "Lewis turning point" and "aging society", labor costs is rising, which means that low-cost advantage will be failing in contribute to the growth. Technological innovation and industrial upgrading will give more impetus to it. Thirdly, because the reform has not yet been completed, a series of structural problems in China's economy has being emerged in the increasingly complex international economic environment. Such as the imbalance of growth, a widening income gap, low efficiency of resource consumption and supply constraints, the deterioration of the environment etc.. It will become a major obstacle to China's economic transformation and upgrading if these problems can not be solved effectively.In order to deal with these challenges and avoid falling into the middle-income trap, the Chinese government began to practice a full range of transformation in the mode of economic development.The government put forward that we must keep to the new path of industrialization with Chinese characteristics, pursue the policy of boosting domestic demand, particularly consumer demand,and propel three transitions in the mode of economic growth:the transition from relying mainly on investment and export to relying on a well coordinated combination of consumption, investment and export, the transition from secondary industry serving as the major driving force to primary, secondary and tertiary industries jointly driving economic growth,and the transition from relying heavily on increased consumption of material resources to relying mainly on advances in science and technology, improvement in the quality of the workforce and innovation in management. Among which, to build enduring effective mechanism to expand domestic demand will become an important content and the main attack of the transformation of the pattern of economic development in the period of the "Twelfth Five-Year-Plan".This was mainly due to China's huge domestic market scale and economic development has entered into a mature stage of development. While the expansion of consumption demand is more likely as a tool to promote economic growth,the development of consumption should become the endogenous power of the economic development,which was the inevitable trend and the inherent requirements to leap over the middle-income trap and march towards the high-income stage.Consumption development is the inherent requirement of the development of social productive forces and social system, which has a profound historical and realistic necessity. Based on the historical materialism, the paper focused on the consumption development of Chinese residents, revealed the connotation and forms of consumption development, explored the nature and causes of the middle-income trap, and carried on a profound analysis to the logic relations and the mechanisms between consumption development and the action of across the Middle Income Trap. The theoretical research,model construction and statistical tests are comprehensive utilized. By selecting a series of typical developing appraisal quota, it constructed the CDI index of Chinese residents and argued the status of their consumption development from1990-2011. At last, the author put forward policy recommendations on leaping over the Middle-Income-Trap by promoting development of consumption.From the related literature and data collection, retrieval, reading and induction, based on the basic theory of consumption economics, coordinate the relevant principles and analysis perspective of economic sociology, consumption sociology, consumption culture, consumption philosophy, social psychology, the paper comprehensively use the empirical analysis and normative analysis to analyze the theoretical and practical issues on consumption development of Chinese residents in the middle-income stage.The article is divided into six chapters:The first chapter, introduction. Which mainly introduced the research background and the significance of the topic, then illustrated and explained the related concepts. And on this basis, it introduced the research methods and the main ideas of this paper, the structure arrangement and the innovation and deficiencies.The second chapter, theoretical basis and research review. At first, it reviewed the origin and foundation ideas of consumption theory. Then made a comprehensive introduction to the evolution and development of consumption theory, which included the Marxism thoughts on development of consumption, the consumption function theory of western mainstream economics, and related consumption development theory in sociological perspective. It also summarized and reviewed the domestic consumption development theory and empirical research in recent years. In addition, the article summarized the middle income trap theory, which mainly related to the theories of development economics.The third chapter, construction of the consumption development system. The chapter made a comprehensive study on the nature and characteristics of the development of consumption, deeply analyzed the dialectical relationship between production development and consumption development. Theoretical analyses on forms of consumption development as well as its intrinsic dynamical mechanism have also been made. It also discussed the micro mechanism and macro impact on consumption development from the perspective on the intrinsic attributes of various elements of consumption, market environment and consumption externalities, along with the impact of macroeconomic policies. The increase in consumer's capacity improvement of consumption efficiency,harmonious in consumption environment and promotion of consumption level are considered to be embodiment of consumption development. It forwarded that the contradictory movement between various elements of consumption system and its evolution drives the consumption development, market players in pursuit of related interests constitute the key motivation factors of consumer development, and the construction and guide on rational model of consumption by the government and non-governmental organizations who tried to meet the needs of social development was the direct impetus to the development of consumption. Then, the paper selected27developmental indicators from which the consumption development factors were extracted by using factor analysis method, and constructed the index evaluation system of Chinese residents consumption development.The fourth chapter, an empirical study on the development of residents' consumption in china. At the beginning, this chapter reviewed the process of the residents' consumption development in China since the founding and the made a stage division, predicted the future development trends. Then gave a general analysis and description of the status of consumption development at present. It was found that, at this stage, real estate investment was crowding consumption out, differentiation between consumer groups was obvious, the middle class consumer groups are forming.The fifth chapter, the relationship and the mechanism between the consumption development and the middle income trap. This chapter is the core of the theory, it utilized the behavioral economics, sociology of consumption, the externality theory and ecological economic theory to analyze the essence of middle income trap phenomenon, and proposed that the internal contradictions of consumption and production is the source of the middle-income trap, a comprehensive analysis was made from subjective and objective two aspects on the genesis of the middle income trap. The paper pointed out that the target of consumption development and spanning the middle income trap was interior consistent. Middle Income Trap threat put forward an urgent need to change the mode of economic development, while consumption development was important content and effective way for transforming the mode of economic development. At end of this chapter, the article uses econometric methods tested the Granger causality of consumption development and Middle Income Trap relationship factors.The sixth chapter, policy recommendations to stride across the Middle Income Trap by promoting Chinese residents' consumption development. Combining with the new characteristics and new problems in all aspects of the economic, political, cultural and social structure which China confronted with when enter into the middle-income stage, the paper analyzed the chances and challenges China confronted at present, then proposed the measures to stride over the Middle Income Trap from the perspective of consumption development. The paper put forward that in view of current status and stage of development of China, the social spending power was relatively lower than the continuously improved productivity level, which would become the crux and the root cause of the concentrated outbreaking of all kinds of contradictions in China's future. Whether we can promote the development of consumption and quickly upgrade the overall social spending power, achieve the growth from investment oriented to consumption oriented, will be the key to the success of crossing the middle income trap location. Consumption development is an organic combination of the consumption subject, consumption object and consumption environment, therefore, to promote consumption, we must start from the above three elements.The innovation of this paper is mainly reflected in the following aspects:the innovation of research perspective, the core concepts innovation and the contents. Through the variable of consumption development,it builded up a framework from micro analysis to macro analysis which combining the family happiness and economic development. The paper analyzed the core concept of the relationship between consumption and across the middle income trap dialectically and systematically, ultimately settled for the transformation of the mode of economic development. The essences of the middle-income trap were profoundly interpreted from the perspective on internal contradiction of production and consumption Based on the historical experiences of domestic and international economic development, it illustrated the stage, historical and realistic feasibility of the consumption development driven economic development.During the thesis review and defense, it is coincided with the opening up of Third Plenary Session of the18th CPC Central Committee, a decision was approved on "major issues concerning comprehensively deepening reforms", which is the basic programme to promoting economy develop continued and steadily, and striding over the the middle income trap. It is also the guidelines to fully completing the construction of well-off society and implementing the Chinese nation's great reviving. As time is pressing, the paper has not integrated relevant content of the "decision" in the writing, which would be done in the process of further modification and perfection.