The Research Of Rural Consumption In Shandong Province And Its Impact On Economic Growth

Investment ,consumption and exports are driving the growth of a country's economy. consumption can be divided into personal consumption and government consumption, the personal consumption can also further divided into urban consumption and rural consumption. Therefore, rural consumption is an important factor in promoting economic growth. However, nowadays, investment and foreign trade become the most important driving force of economic growth in Shandong Province. consumption, especially consumption of rural are slightly less than investment. With high investment to drive economic growth, not only the environment is difficult to carry, but also there the problem of excess production capacity and could lead to economic, political, and a series of social contradictions.This paper are based on the theory of rural consumption and economic growth, carried out both of qualitative and quantitative analysis. Firstly, chapter 2 analyzed related concepts and its influencing factors of consumption and economic growth in qualitative method. Then chapter 3 analyzed the features of rural consumption in quantitative method. In this chapter, rural consumption characteristics are researched in multiple views, such as general features, differences between different areas, and differences between urban and rural areas. Chapter 4 is based on the previous two chapters, which mainly research the impact on economic growth caused by rural consumption in empirical analysis. First of all, contribution rate in GDP caused by rural consumption were analyzed, and then using the state space model to research the impact on economic growth caused by rural consumption and other consumptions, finally compare their impact through the test results. At the end of this paper, some policy proposal were proposed to solve the problem of rural consumption and its impact on economic growth in Shandong Province.