Empirical Analysis On Residents Consumption Impact On Economic Development Of China

Since reform and opening-up, income and consumption level of Chinese residents increased constantly, consumption demand play the main power to enhance the growth of economic, consumer demand played a growing role to impact on the national economy development. However, from 1990s, the rate of residents consumption declined continuously, lack of consumer demand in China was the hard nut, particularly, the international economic crisis caused this problem is more acute and prominent. Although the government has carried out a number of macro-control measures to stimulate consumption, the effect is not obvious. Empirically analyze the residents of the relationship between consumption and economic growth, solve the insufficient consumer demand problem and expand domestic demand become the focus. In this paper, the writer use quantitative analysis method to estimate the effect of consumption on economic growth, and on this basis give the corresponding motions to expand the consumer's policy recommendations.To begin with, the paper overview of the residents consumption at the present, analyze the role of residents consumption to promote economic growth, the contribution of urban and rural residents to economic growth rates and elasticity. Among these, comparative analysis has been used to estate urban residents and rural residents consumption. And the conclusion is that the rates between investment and consumption are serious imbalance, the consumption rate of urban and rural residents continued to decline in recent years, especially, the rural consumption rate has dropped faster than the rate of urban one. By the regression analyze urban and rural consumption with economic growth, we can draw that residents consumption play more important role to improve the economic growth, and to smooth the economic cycle fluctuations the rate of it is larger, the percentage is higher. Therefore, under the condition of consumption rate has slackened, how to increase consumption, especially the consumption of rural residents has important value of economic theory.Secondly, the writer illustrate the relationship with economic growth from the consumer structure point. The mechanism of economic growth effects the consumer structure could be concluded that: consumer structure firstly effects industrial structure, and then a change take place in the allocation of resources, thus economic growth could be effected. Therefore, consumption structure determines the structure of economic growth, reasonable structure of consumption demand is the condition and the base of economic growth. From the connections among eight types and economic growth, the Engel coefficient and economic growth, from the consumption structure factor analysis of horizontal angle, empirical analysis of consumption structure and the relationship between economic growth, the writer has found out which consumption application is the main factor to effect economic growth.Finally, the writer give some suggestions in the paper to promote economic growth by expand residents consumption. China should try to straighten out the relationship between income distribution, prevent the income gap problem, increase the purchasing power of residents, improve the social security system, change the residents consume expectations. In order to improve the economic growth of China, proactive consumer policy should be carried out, and then the new consumer demand will be fostered, and consumption structure would be upgraded.