The Theoretical And Empirical Study On Regional Industrial Structure And Consumption Growth

Under the global industry adrustment, China is facing the transfer of industries from the developed western countries. Unreasonable regional industrial structure became a prominent issue in China's regional economic development during the transformation. Since the reform and opening-up, our economy's foreign trade dependence has risen and export has become the main force driving for economic growth with the strategy of the export-oriented implementation. Meanwhile, domestic investment in fixed assets becoming overheated, leading a serious imbalance in the proportion of domestic consumption and investment. The imbalance is the most prominent performance within the inner-economy of China (Fang Lin, Zou Weixing, 2008).It can be concluded that China's economic growth structure imbalance and the situation of insufficient domestic demand has not been fundamentally reversed so far. Regional industrial structure and consumption growth have a strong internal relation. Then, what is the relationship between regional industrial structure and consumption growth, and the paper will answer this issue from the theoretical and empirical aspects.Based on the comprehensive review of relevant literatures on consumption shortage, we explain the deep-seated reason of insufficient consumption from the new perspective of the regional industrial structure. Under the framework of "effective supply", China's irrational regional industrial structure and insufficient effective supply become the new explanation for China's consumption shortage. Regional industrial structure has impact on effective supply which is a key factor in consumption growth, because insufficient effective supply is not enough to meet consumers' demand, leading to slow consumption growth. The empirical test is based on the economic data of the three major areas. The results of analysis show that industrial structure affects consumption growth by affecting the effective supply and industrial structure is the Granger cause of consumption growth, different regions and different industries have different impact on consumption growth.After the economic crisis of the times, China's economic development will greatly rely on domestic demand. Therefore, to fundamentally solve the practical problems of inadequate consumption and to achieve the driving of final consumption on economic growth, it is necessary to accelerate industrial restructuring, including accelerating the development of the third industries in the eastern area, promoting the new industrialization of the central area and accelerating the development of the agriculture in the western area.