The Consumption Analysis Of Six Middle Provinces's Urban And Rural Residents During 1999-2008 Year

With respect to China's economic development, there are regional differences in the east, midland and west. To reduce regional differences and achieve a balanced development, instituting the policies for midland's improvement has been put on the agenda. The central region is the bridge and the link connecting the east and west, is the solid support of balanced and harmonious development of China's economic. The improvement of the central region is significant for the balanced development of China's economic. To pull the central economic development, we need to turn to increase the domestic demand. And expanding consumer demand lies in cultivating the consumptive demand of peasants in mindland. In this paper, we studied the consumption of urban and rural residents in six midland's provinces from 1999 to 2008. Our principal aim is to find the major differences between urban and rural household consumption and to propose political recommendations to increase the consumption of rural residents so as to boosting domestic demand in midland and promoting economic development.To study urban and rural consumption, we mainly adopted the Keynesian theory of income hypothesis. Using literature analysis, normative analysis and empirical research, firstly, we studied the differences between urban and rural residents' consumption then found the factors causing the differences; secondly, we analyzed the consumptive structure, phenomenas of consumptive differences, consumptive trends and causes of urban and rural residents in six provinces in midland from 1999 to 2008; thirdly, we established respectively for urban and rural residents consumptive function model. With statistical measurement method, we obtained the consumptive function of China's urban and rural residents in midland and consumptive function of peasants with different income sources in the six provinces in midland.The analysis above indicated that there is a significant linear relationship between consumer spending and income of urban and rural residents in the six provinces in midland, according to the model of Keynesian consumptive function. Due to different income level, consumptive environment and consumptive idea, the level of rural residents'consumption and consumption structure are still lower than that of urban residents. So that, to increase consumption of rural residents and improve rural residents'consumptive structure are important. From the quantitative analysis we can see that the propensity of rural residents to consume is more significant than urban residents. And to the aspect of driving consumption, with the same increase of income, consumptive expenditure of rural residents is more than that of urban residents.Based on the study above, we have put forward some political suggestions, such as: firstly, to improve the income level of the rural residents in the six provinces in midland , mainly to improve the salary income; secondly, to increase the investment of the agricultural infrastructure and construct new socialistic countryside; thirdly, to strengthen the construction of the mechanism of market and improve the rural consumptive environment; fourthly, to construct a sound and perfect rural social security system and release the consumptive demand of rural residents; finally, to improve and implement the policies of industries in midland and the policies of industrial transfer.