Chongqing Rural Consumer Role In Promoting Economic Growth

From the reformation twenty years, under buyer's market, the insufficiency of the avoid demand is prevent the development of economy, to start consumption problem has been the most important in economic studying field. Chongqing is not of exception. The paper is based on investigating and collecting the consumption data of rural resident of Chongqing from 1986 to 2005. Around the rural resident's consumption question of Chongqing, to analyze the difference of rural resident's consumption,problems and the suggestions.This paper, recalled some of the western consumption theories such as the hypothesis of absolute income, the hypothesis of the relative income, the hypothesis of the sustained consumption and so on. Combine the theory and practice, use positive studying method, to analyze the regularity and feature of the rural resident's consumption. We hope to get great studying results, and to supply theoretic basis for starting the rural consumption market.By the income growth of rural residents of chongqing, their consumption level has increased. They start to pursue higher quality and more convenient life. At present, the rural resident's consumption of Chongqing has some features, such as the condition of eating and living is better; rural resident's spiritual life is more sufficient; the service consumption has increased. This paper, shows that the consumption level of peasants in Chongqing is higher than that of the past, but there are remarkable differences between urban and region. These remarkable differences will prevent the economic growth of chongqing. So we should try measures to modify this condition.On analysis the historic variation of the peasant consumption composition in Chongqing, the consumption level and composition of rural households in Chongqing is changing from the stage of dressing warmly and eating their fill to comfortably well-off. There are many problems in the peasant consumption composition in Chongqing, such as the consumption of food is too high; there are remarkable differences in the peasant consumption composition. The author uses 2005 year cross-section data on income and expenditures of rural household of Chongqing for further analysis, and obtains price and income elasticity of consumption and consumptive trend in future by extended linear expenditure system(ELES). Concerning the true condition of chongqing, this paper draws that income is the most primary factor to consumption by the models of consumption function (Friedman's permanent income hypothesis and Modigliani's life cycle hypothesis).This paper deeply and systematically studies the history process and laws of rural residents' consumption and analyzes the relations between above factors and the national economy fluctuation. Collect the data of consumption,investment,export and import, and compute their proportion of GDP. Then research the function of rural residents' consumption to economic growth. Discussing the relationship between consumption and economic growth, the result is the variation of consumptive level and composition has a guiding rule to adjust economy structure.This paper proposes the reasons of being short of demand in rural region. Such as: income is the key factor of preventing economic growth; the condition of consumption is imperfect; the contradiction of demand and supply of goods is serious; the social ensure system is not whole; the conception of consumption is backward and so on. There is no doubt that starting the rural residents' consumption market has very important action. Finally, brings foreword corresponding measures for perfecting the rural residents' consumption policy and market. Such as: increase the income of rural residents; strength the system of rural goods circulation; perfect the environment of rural residents' consumption; improve the quality of service and so on.