The Influence Mechanism And Policy Suggestions Of Rural Consumption

Consumption is the fundamental power of economic growth, but our current consumer market situation is not optimistic. The rural market is our largest and the most basic market. It has both plenty of potential and significant meanings for expanding domestic demand. Since rural consumption level has been low for long-term, there's a big gap largely restrainng the whole society consumption level between the rural and urban consumption level. It becomes the focus. For this reason, to expand domestic demand and stimulate economic growth within nature power, the advancement of rural consumption is not only the key but also the difficult point.The starting point of this paper is to rearsh into the influencing factors on rural consumption and find the effective path to improve it. The low rural consumption level is not only the individual consumer behavior problem, but also closely related to our overall situation of reform and development. It's closely related with the traditional dual structure in urban and rural for urban and rural residents as our two largest consumer groups having so large gap in consumption level. To break the'dual structure'and coordinate urban-rural development have become national priorities. So we must breakthrough the ideas limition in rural and peasants and explore the thinking and approach to improve the consumption level from the macroscopic perspective of economic and social development on rural consumption problem.The the Influencing factors on rural consumption should be a system based on the above discussion. This paper built a influence mechanism of rural consumption from macroscopic perspective base on western consumption function theory and our actual conditions and made systematic analysis and discussion of the various elements in the mechanism by empirical methods so as to get research achievements and offer a theoretical basis as well as the policy ideas for the effective promotion of rural consumption level. The specific content of the paper contains five parts:The first chapter is introduction. This chaper introduced the topic backgroud, made a brief summary and description in abroad consumption function theory and domestic research dynamic in rural consumption and then clarified the research aims, meanings, thinkings, techniques and innovations.The second chapter is the status analysis of rural consumption. The paper described the level and structure of rural consumption on a comparison between urban and rural, as well as the contribution to economic growth of rural consumption. It then introduced china's east, central and western rural consumption situation based on regional differences.The third chaper built a influence mechanism of rural consumption from macroscopic perspective which is made up of four factors system including factors of economic development, institutional, income distribution and consumption psychology of people, and then it made detailed theoretical analysis on variable factors of the system.The forth chaper is the empirical analysis of the influence mechanism of rural consumption. The paper fellow the above factors system and the empirical results of the panel data model showed that:economic development, the farmers' income and benefit farming policy all performed a significant positive impact; well urban and rural income gap and the farmers'high savings rate performed a significant effect on the negative to rural consumption. Basic public services shew a significant effect only to the east side of the consumer because of the regional differences.The fifth chaper provided policy ideas and suggestions to promote rural consumption effectively base on the conclusion from the empirical results after a summary of above content. It first emphasized that the government should coordinate reasonably the relationship between economic development and livelihood improving and always follow the principle of such a benign cycle that 'economic growthâ†'livelihood improvingâ†'people consumption increasingâ†'economic growth'. On this premise the government should reasonably press ahead with urbanization, increase farmers' income through various channels, reshape the divided public service system and narrow the urban-rural gap. Only adopt comprehensive measures can we effectively promote rural consumption to increase.