An Empirical Study On The Consumption Structure Of Urban Residents In Guizhou Province

Consumption is the most fundamental factors for driving economic developmentin a in a sustained and steady manner. However, consumer demand has been weak inChina which has long been relying mainly on investment and export to stimulategrowth. Boosting domestic demand and leading resident reasonable consumption hasbecome the focus of China’s economic development strategy. In terms of our country,economic development in western China is relatively backward and its consumptionrate significantly decreased with the inconsistent of conservative consumer spendingand income growth. As we all know, consumption structure is the main factors toreflect the economic development of a country or a region. And according to thecharacteristics of the consumer is mainly rely on the urban residents in GuizhouProvince located in the western of plateau region. Therefore, research of theconsumption structural characteristics and development trend of urban residentsinside Guizhou is important to promote the economic development fast and stable,and also provide a reference for the development of the consumption structure of ruralresidents in the province.For a more comprehensive study of the consumption structural characteristics ofurban residents in Guizhou Province and its development trend, this paper firstestablished the panel data model for eight categories of consumer expenditure ofurban residents in the western region in 2000-2012 to analyze its consumptionstructure of characteristics and development trend. On that basis, the paper discussesthe main reasons for differences in average per capita consumption between GuizhouProvince and other provinces in western. The results showed that the averageconsumption level of Guizhou provinces mainly consumes food and housing as wellas Shaanxi and Gansu provinces, which gets middling all western ranking. Andresident consumption model is changing on the main of the living type consumption.Guizhou Province still has great consumption potential in health care. Secondly, thepaper chooses unbalanced panel data of representative four cities of Guizhou Provinceto establish a random effects model to analyze the impact and the propensity ofresident consumption structure with per capita disposable income. The empiricalresults show that the income has a positive impact on consumer spending, the higherthe income, the higher the consumer spending. The marginal propensity to consumeof urban residents is more than 10% in the transportation and communications exceptin food, while is only 2.48% in healthcare. Again, the paper builds corrective LSDVdynamic panel data models for the consumption structure and industrial structure inGuizhou Province after panel unit root testing and co-integration testing. Theempirical analysis indicates that there exists a long-term co-integration relationshipbetween industrial structure and consumption structure. The previous consumptionstructure has a great influence on current of it. On the contrary, the industrial structurehas no significant impact on the consumption structure. In the end of this article, weput forward the relative policy recommendations according to the analysis conclusion.We hope these results have reference value to further escalation of the consumptionstructure and to promote economic and then quick and then good development inGuizhou Province.