Research On Consumption Of Rural Residents In Shanxi Province

In ongoing financial crisis, the mode of our economic growth needs to turn to incresing consumption, especially, consumption level of individual residents. To be aimed at rural residents'consumption in Shaanxi province, this article describes the feature and present stasus of rural residents'consumption level and structure in Shaanxi province, and compares consumption status of rural residents in Shaanxi province, rural residents in other provinces and urban residents in Shaanxi province, and also analyses the issue of rural residents' consumption in Shaanxi province. To be aimed at present status that rural residents' consumption scale in Shaanxi is so small and per capita consumption level is so low, based on pervious research, this paper analyses the factors such as income level of rural residents, the income gap,consumption envioment in rural areas, the uncertainty of expectations for the future, liquidity constraint and social security systerm in rural areas, that affects consumption demand of rural household in Shaanxi province, and analyses the relation between consumption and income of rural residents by means of cointegration and Error Correction Model, according to Shanxi province's time series data from 1990 to 2009 about consumption expenditure and the factors that affect it, then, with Gini Coefficient as the indicator of rural residents'income gap, which was injected into Error Correction Model, and finally draws the conclusion that there exists equilibrium relationship in the long run among the three variables. Finally, this paper gives some advice on incresing the consumption level of rural residents in Shaanxi province.