The Influence Of Consumption Ability On The Optimization Of China 's Industrial Structure

The topic of the essay is to research the impact of China’s consumption ability on the optimization of industrial structure. Based on the theory of consumption and industrial structure, it focus on the optimization of regional industrial structure according to the Panel Data model and make an empirical research to the result whether consumption ability effects the optimization of industrial structure.First, the essay selects seven indicators to build the comprehensive index system of consumption ability of the East, Middle and West Regions, with normative and available data. And compute the synthetic score to representative the consumption capacity variable. Second, Measure the level of industrial structure optimization in two aspects---high advancement of the industrial structure and the rationalization of industrial structure. Then high advancement of the industrial structure equals to the ratio of the third industry to the second industry, the other one is Theil index. Finally, build the Panel Data model based on ten year’s data and thirty provinces to analysis the relationship between the two factors. And by the model to get the results through quantitative analysis,then provide a comparative analysis among the three regions to find the reasons why the differences exist.The empirical results tell that with the improvement of the residents consumption ability, the rationalization of industrial structure is optimized. But the advancement of industrial structure is in the opposite direction. The essay thinks it dues to weak real consumption ability, so the ability doesn’t achieve a positive influence. According to the regression results of the eastern, central and western regions, it shows that the directions of consumption capacity of residents are accordant, not only to the advancement of industrial structure but also to the rationalization of industrial structure. But there are differences between two aspects of the degree of action. In reality, the phenomenon isnormal, and conforms to the objective development of economy. To be specific,the conclusions that the effect of consumption ability to the advancement of industrial structure tell that the force in the western area is larger than that of the eastern region, the force in the eastern region is larger than that of the central region. On the other hand, the conclusions that the effect of consumption ability to the rationalization of industrial structure say that the force in the eastern area is weaker than the middle region, the force in the middle area is more weaker than the western region. Taken together, the space of the impact of the western area residents’ consumption capacity on the optimization of industrial structure is relatively large, compared with the other two regions. The empirical conclusions is not related to differences between regional economic development and regional industrial structure, but also connected to the method to measure the optimization of industrial structure and build the index system of consumption ability. During the development, residents’ potential consumption ability is strong in our country, but it hasn’t been completely released. So consumption ability doesn’t play its positive role. Finally, through the study I hope that we can pay attention to the optimization of the industrial structure from the consumer perspective, and put forward some relevant policy suggestions to realize the promotion of consumption ability on the optimization of industrial structure.