Quantitative Research On The Consumption Issue Of The Urban And Rural Residents In Fujian Province

The increasing consumption demand leads to investment demand, and then makes economy promotional. Therefore, to study the residents' consumption issue in Fujian Province is of significance both in theory and in practice.There is a remarkable dual economy in China, because of long-term division between urban and rural economy. This also leads to remarkable dual characteristic in consumption of urban and rural residents. Therefore, this dissertation divides residents' consumption in Fujian Province into urban residents' consumption and rural residents' consumption, and study this issue from three aspects, as the consumption level of residents, the factors which influence the consumption expenditure, and the evolvement of residents' consumption composition and propensity. And then try to find out the ways to raise consumption demand and optimize consumption composition. This dissertation includes five parts. The first chapter expounds the background and the objects of this study, generalize the process of empirical analysis as well. Chapter two summarizes classical and current consumption functions in the worldwide, and reviews some Chinese scholars' studies in this area. Chapter three utilizes diversified index analysis to compare consumption level of urban and rural residents, and then utilizes co-integration and error-correction model to create the residents' consumption function. Chapter four utilizes ELES model (both static and dynamic analysis) to analyze and compare the evolvement of urban and rural residents' consumption composition and propensity. The last chapter summarizes the main conclusions of the whole empirical analysis, and puts forward the directional suggestions of how to raise the consumption demand and how to optimize the consumption composition both in the consumption markets of urban and rural residents.The major contributions of this dissertation are that: Firstly, study the consumption issue from three aspects, including the consumption level of residents, the factors which influence the consumption expenditure, and the evolvement of residents' consumption composition and propensity. Secondly, put the uncertainty and interest rate into the consumption and income's co-integration and error-correction model. Thirdly, combining the empirical analysis results of ELES model with the practice, give the model scientific and particular explanation, and according to the proportion relation between basic consumption and real consumption, clarify the quality of residents' consumption. Finally, combining ELES model with panel data to make a dynamical analysis for the marginal propensity of consumption.Because of limited knowledge, resources and time, the major deficiency of this dissertation are that: Firstly, more variables are also needed for perfecting the consumption function. Secondly, the dynamic analysis method of residents' consumption composition is needed to be improved.