A Contrastive Analysis On The Consumption Structure Of Rural And Urban Residents Respectively

The strategy of economy development being adjusted, the status of the troika (investment, consumption and export) that maintains the rapid development of our economy is experiencing revolution, and the domestic consumption has become the driving force of the economy during the recent economic in crisis. So the growth of the consumer demand becomes a basic and long-term strategy to stabilize the economic growth. Now our economy mode is being changed from export-oriented, investment-pull ones into the ones depending on the growth of the consumption. With the development of the market economy, the market demand will play a greater role in guiding the production of the commodities. Therefore, the optimization and upgrading of the consumption structure will facilitate the adjustment of industrial structure as well as contribute to the rational distribution of resources. Hence, it is quite practical to study the consumption structure of the residents, the urban ones as well as the rural ones.In this paper, the data of the changes and trends of consumption structure of the residents, both urban ones and rural ones, in the last decade, are analyzed qualitatively and quantitatively, statically and dynamically. Then, the characteristics and the differences of the consumption structure of the residents of the two categories above are concluded. Marginal Consumption, Income Elasticity and Price Elasticity have been exploded using the Extend Linear Expenditure System (ELES), and the level as well as the structure of consumption predicted with the help of the Grey System Theory. In the end, some recommendations are provided.With the profound economic reform, this paper focuses on the difference of consumption structure of the residents, both urban ones and rural ones, using the time-series data and economic models to analyze the differences of the consumption structure of these residents. Depending on the analysis, a series of potential growth areas in consumption as well as the variation tendency of the consumption structure are predicted. On the basis of the result above, some recommendations on narrowing consumption cleavages and optimizing structures are given.