A Study On The Impact Of Population Aging On Residents' Consumption In China

Consumption is one of the real power of economic growth and the ultimate goal of economic growth and development. Aging population directly affects the consumption,and then affects the economic growth and development. For decades, China’s economy maintained rapid growth, but also has some problems. Some problems are serious, for example, aging problem, it will directly affect the domestic consumer demand, and make Chinese Residents’ Consumption rate become lower and lower.The low consumption rate ultimately will affect China’s Economic Sustainable Development. In order to obtain beneficial enlightenment,this paper studied the relationship between China population aging and residents’ consumption on unique perspective of population aging.This paper firstly does a qualitative analysis on the relationship between the aging population and consumption from the perspective of economics theory. On the basis of the classic life cycle theory, constructing Residents’ consumption function model with demographic factors,next using provincial panel data from 2004 to 2012,this paper does empirical analysis for this model to China national level and three economic regions.The research results show that young dependency ratio and old dependency ratio show a positive correlation and negative correlation respectively on the relationship between population structure and Residents’ consumption rate. It shows differences between regions due to the different degree of population aging.This is consistent with the levels of economic development between regions.In response to the coming of a higher degree of population aging, Recommend measures are mainly :Expanding employment,to strengthen the construction of human capital, to build China’s old-age security system and medical security system to adjust local conditions.In addition we must adjust the elderly consumption idea, develop elderly service industry,formulate more flexible retirement plan and encourage entrepreneurship and employment of elderly people.