China's Consumer Demand And Economic Development Patterns Empirical Analysis

Economic development is always a focus of economic research. During economic construction, developing quality and growth speed will directly affect a nation's comprehensive strength and the people's living standard, and the change of the pattern of economic development can also influence a nation's developing quality and economic sustainability correspondingly. With the deepening of China's reform and opening up, relying on the original investment-export-oriented mode of economic development has become increasingly unsuited to the needs of China's economic development, and except that, the declining of the Consumption-GDP ratio is also severely constrained the transformation of the mode of economic development at the same time. So, the uncoordination between consumption structure and industrial development will be an obstacle to the changing of the mode of the economic development.At first, by sorting out the several stages of the economic development and its developing mode since the founding of china, we obtained the changing status of the economic develop mode and found that China's current investment-export-based economic development approach is already on the plight, more over, the lack of consumer demand will also impede the changing of the china's economic development mode at the same time. Secondly, with the referencing of the Solow's economic growth model, the paper re-processed the time-serises data from 1978 to 2008,and analysed the China's economic development mode through a quantitative way. Thirdly, the paper assumed that if the increase in labor and capital play a leading role in economic growth, we call that situation is extensive growth mode, otherwise, we call it intensive mode of economic development if it is caused by total factor productivity. At last, In order to more accurately know that consumer demand does affect the the pattern of economic development, the paper analysed its real contribution to the changing of the economic development by using multiple regression analysis,whereas the research was based on the data we have received earlier.After identified that consumer demand will impact on the intensive mode of economic development, this paper continues to find reasons for restricting China's consumption demand. Then,by analyzing the situation of consumption structure and industrial structure, we found that the production-oriented economy has already transformed into a consumer-oriented economy in today's china, and the consumption demand has become the guidance of the Optimization and upgrading of the industrial structure, moreover, reasonable industrial structure in turn will promote the transformation of the mode of economic development. In China, there is some difference between consumption structure and industry structure and the industrial structure has been unable to meet the development of the current consumption structure, so, it has become the Important reason for restricting the consumption demand and transforming of economic development pattern.Based on above results, we obtained some policy recommendations:If we want to change China's economic development pattern, it is necessary to expand consumption demand and improve China's consumption structure, optimize and upgrade the industrial structure, Make it compatible with the consumption structure, etc.