An Empirical Analysis Of China's Consumption Rate And Its Change Since The Late 1970s

Consumption rate is a key aggregate index, which directly reflects the state of national economy. Studying the consumption rate has many theoretical and realistic meanings. It not only can rich consumption theory, but also can improve economic development. However many papers on the study of consumption rate emphasize consumption's structure, scale and policy, but lack deeply empirical analysis to its change. And basing on this, the article combines theory with practice to discuss China's consumption rate and its change since the late 1970s. On the basis of their definitions, it analyzes the function of final consumption rate, citizen consumption rate and government consumption rate since the late 1970s. This essay gives both a vertical and horizontal comparison of them, and a fact is concluded, that is, China's consumption rate is low and the phenomenon results from the lowness of citizen consumption rate. Then the paper explains the main reasons about the decrease and suggests how to stimulate consumption rate.This article is divided in four chapters except the preface.The preface expresses consumption rate's meanings, significance, study status and brings forward the author's study view.Chapter 1 is the empirical analysis on China's consumption rate and its change since the late 1970s.Chapter 2 analyzes why the consumption rate is low.Chapter 3 discusses the relation between consumption rate with economic development and investment rate.Chapter 4 gives some advice how to raise consumption rate.