The Research On The Consumption Structure Change Of China's Residents

In recent years, due to the rapid development of China's economy, our standard of living of urban and rural residents'has been greatly improved. However, the low rate consumption of the residents'and the insufficient domestic demand are holding back the further growth of our economy. Studying the consumption structure of residents can help to solve the problem of insufficient domestic demand and to promote consumption and sustain the healthy growth of economy.The article studies the consumption structure of urban and rural residents in current China, including current and historical economic data, comparative study of statistical data. This article is divided into three chapters to deal with the discussion.The article defines what is the consumption structure at first, illustrates the value of the consumption structure study. Then it focuses on the current consumption structure of China's urban and rural residents, analyze specifically every part's costs of the consumption structure. The food consumption is a major expenditure of urban and rural residents'. The main changes in this area is that the proportion of grain declines, while others, such as meat, poultry, eggs, aquatic products, etc. have a significant increase. In housing expenditure, the living space of rural residents'is larger than that of urban residents', while urban residents have better houses than the rural residents; the rural residents grow faster on the expenditure of clothing, while the urban residents spends more money on it. Household expenditure and cultural and educational expenditure, for the income of urban residents increased faster than the rural residents, and the power and water supply and other service facilities in towns are better than that in rural areas, so urban residents, household equipment and educational supplies entertainment spending levels and their percentage share of consumption are higher. Service consumption as a measure of living standards and quality, the most in the consumption structureWhen we analyze Chinese consumption expenditure on the district level, China can be divided into four regions: the eastern region, central region, the western region and northeast region. From the statistics, we can find that the country's eastern region is densely populated, economically developed, either from the absolute, or on the consumption structure analysis, the consumption structure is superior to northeast, central and western regions. The northeast and central regions also have a large population, but have low level of consumption, the western region has a large area and a small population, and its economy growth are slower than the others.Comparing the consumption expenditure of urban residents in China with that of US urban residents', we can find some differences. US urban residents only spend 13% of their total expenditure on the food, but China urban residents have to take 36% for food. At the part of education, transportation and communication, China's residents also have a long way to go. On the other hand, China's investment rate is at a high level all over the world. Our consumption rate has a large gap from the international average consumption rate, not only with developed countries, but also with the developing countries. This objectively reflects the wishes of our consumption is not strong, the grim situation of insufficient domestic demand.According to the result of the comparison, we can find the main problems that cause the insufficient domestic demand, and why the upgrading of the consumption structure of urban and rural residents'is being held back. Firstly, the income of the residents is not good enough, which is the results of low consumption. Lots of bureaus and local governments pursue the speed of economy growth while ignore income distribution, which leads to the low personal income in the first distribution. Secondly, our social security system is imperfect. This will force our residents to increase precautionary saving, weak the people's will to consume. Thirdly, the gap between the rich and the poor has widen, it makes the lower-middle class spend less, it restricts consumption. Fourthly, rural infrastructure, social security and the income of rural residents are not as good as urban residents, which has narrowed the consumption. Some old economic policies have also hindered the upgrading of consumption structure.In the latest thirty years, since reform and open policy began, according to the Engel's coefficient, the consumption expenditure of urban and rural residents can be divided into three periods. Since each period had some factors, such as national policy, economic development, and mind changes in consumption, they all influenced the consumption structure, so each period of consumption structure is different. If we connect the three phases, each element has a different trajectory, food, clothing and other necessities of life-and-down in consumer spending, the general trend is downward. The transport and communications, culture, education and entertainment, medical care, these developments, the proportion of consumption for enjoyment has a rising trend.There are three of the most important factors that we mentioned earlier affects consumption structure, one of the most important is economic development, if there is no development, the income has not changed or reduced, there will be no consumption of the upgrading process. In addition, the country's various policies to encourage consumption of timely availability, but also become an upgrading of the structure of power consumption. In China, residents from the traditional concept of consumption to changes in the modern concept of consumption, as well as favorable for the concept of healthy living environment for people to lift the thought of imprisonment, to promote the consumption structure upgraded.Therefore, we should start from these three factors, to resolve the current main problems of consumption structure. Firstly, we should make some new hot spots of consumer to expand consumption and promote consumption. Insurance, consumer, leasing consumption, green consumption can become emerging areas of our consumer. Secondly, improve the social insurance system, the government should put in place a series of related policies about pension, health care, education and housing to expand public spending, to give the higher propensity of low-income groups a steady income, to boost their consume confidence. Thirdly, we should develop new patterns of consumption credit. Fourthly, we should eliminate policies and regulations that hinder the consumption patterns.From these conclusions, we believe that as China's overall national strength is increasing, our government will certainly have the ability to take measures to solve all the problems in the upgrading of the consumption structure, advance the residents consumption level to achieve China's"wealthy and strong country"future.