Study In Domestic Consumer Demand Promoting Economic Growth

Consumption, investment and exports are the three carriages to pull economic growth. According to the three kinds of factors on the economic development, there are high consumption of domestic demand-led growth, represented by the United States, and low consumption rate, high export dependence of the export-led growth, represented by Japan. Different economists have different points of view on the stimulating effect from Investment, exports, consumption on the economy. Under such a complex economic and social situation in our country, we should co-ordinate domestic development and opening up, insist on expanding domestic demand. While maintaining investment in moderate growth, we should focus on expanding consumer demand to form a good economic development situation by three major driving forces.Based on the predecessors′research on consumption and economic growth and the research methods of modern economic theory, this article analysed a large number of detailed data and found out that lack of consumer demand had become the bottleneck of China's economic growth. Expansion of consumption is a long-term mechanism to promote China's economic growth. Only the rising consumer demand is the permanent power to promote economic growth. The article Carried out further detailed analysis of the nature of the reasons for the lack of consumer demand,and found out how to implement effective policies to achieve "expanding domestic demand, and ensuring economic growth" under the world financial crisis. To expand consumer demand actively will be able to promote further economic growth by the adjustments of consumer policy and the right demand management.