The Analysis To Rural Residents Consumption In China

Nowadays Chinese GDP increases but from the relation of consumption, investment and export, their contribution to our GDP is unbalance, in which consumption of countryside is lack.In this article, the writer analyze the reason of rural residents lack of consumption from income factor, non-income factor, institution factor, using consumption and income data from 1990 to 2008. The writer use theory analytical method and calculation analytical method to explain and analyze the factors that influence the consumption of rural residents. Secondly, in this article the writer combines the analysis for the factors affect consumption in both domestic and abroad and make some change.The writer select permanent income, temporary income, wages income, net Income from Household Operations, property income and transfer income to analyze the impact on consumption expenditure of rural residents correctly.Finally, the writer gives some rational financial proposals by feasibly analysis from the factors such as income factor, non-income factor and institution factor.