Research On The Impact Of Income Gaps Of China Residents On Consumption Demand

With the rapid economic development,raising the level of overall income,the widening gap of income distribution in china is increasingly significant. Meanwhile,Consumption demand in recent years which is known as one of the"troika"of stimulating economic growth also showed significantly less.Although the state continue to adjust the income distribution policy, adopted a series of measures to expand consumption demand,but with little success.Variety of empirical analysis shows that income gap restricted the growth of consumer demand.Therefore,there is a practical significance about studying the impact of widening inome gap on consumer demand.In this paper,we will discuss the relationship between income distribution and consumption demand in depth,analyze the impact of income gaps on insufficient consumption demand.So,the text put forward some policies in keeping economic steady,expanding consumption demand and narrowing the income gap.The paper is structured as follows:For starters,the introduction systematically summarizes the research results and deficiencies of scholars by reviewing the theories on the relationship between income distribution and consumption at home and abroad.Second,the theoretical analysis on the basis of Max's consumption theories and Western classical consumption theories,which sets out an implicit conclusion that the existence of income distribution effects are supported,that is to say,the enlargement of income gap will decrease marginal consumption propensity and cause the lack of consumption demand.Then,the income gap between urban rural areas,between regions, between industries is included in the study object,the paper conducts a general analysis the reality of the widening income gap and the performance of consumption rate,Consumption propensity as well as household savings over the years in china,fully demonstrated the status of the residents'insufficient comsumer demand in China in recent years.Meanwhile the reason of continuous enlargement of resident income disparities that causes insufficient consumption demand is also reviewed.Then,Concerning china's current situation,the paper makes an highlight elaborate on the total consumption,structure,methods,effect of policy implementation and other aspects,that the widening income gap constraints to improve consumer demand.In the empirical test,in order to verify the impact of income distribution on consumption demand,the text selects the relevant data in recent years,respectively starting from urban and rural,region,industry,form the consumption functions on the basis of income gap according to china's reality.As the result,Both urban and rural,regional or inter-industry,consumption demand and the income gap present a negative correlation.Consumption demand will decline and make an inadequate performance along with the expansion of income gap.Finally,we must strive to narrow the income disparities in order to enhance consumption demand,expand domestic demand,stimulate economic growth as well as promote economic stability and development.The last but not least,the paper puts forward some feasible proposals and countermeasures on how to narrow the income gap and expand china's consumption demand,from different policies for different income groups,improving the social security system,adjusting the irrational relationship between income distribution and other aspects.