A Study On The Changing Trend Of The Proportion Between Investment And Consumption In China Since 1978

The proportion between investment and consumption is an important aggregate index, which reflects the developing state of national economy. After analyzing the changing trend of the proportion in China since 1978, it is found that the investment rate rises while the final consumption rate declines during fluctuating. This tendency is correspondent to the general evolving regulation of the proportion of investment and consumption basically. But the investment rate, especially the fixing asset investment rate has inclined, while the final consumption rate, especially citizen consumption rate has declined rapidly in recent years. In comparison to other countries, the investment rate of our nation is higher while the consumption rate is lower, and the degree of the difference rises gradually in recent years.So I think the current problems of the proportion between investment and consumption of our country is that the investment rate is higher and rises more rapidly, which results from the rapidly inclining of the fixing asset investment rate. While the consumption rate especially the citizen consumption rate is lower and declines more rapidly.Through my study, I believe the reasons of the low consumption rate include that the residents' income is low, the residents' propensity to consume is low, and the population is varying. While the industrialization process, the sufficient finance, the effect of the policies' cumulating, the main content of consumption's transferring, the low efficiency of investment, and government's intervention in administration make the investment rate high. So the corresponding advices are that raising the permanent income of residents evenly, regulating the income dividing system, perfecting the consumption credit system and social indemnity system, adjusting investing structure, reforming investing system and the check system for the government.