Research On Optimizing And Upgrading Of Service Consumptino Structure In Central Reigon Of China

With economic development, there will be uneven economic developmentamong regions in China. In influence of policy expanding domestic demand and promoting consumption, expanding consumption is an important way to develop economy. In Government Work Report in 2010 declares clearly that we need to accelerate development of services and increase its share in GDPand develop new and hot consumption to step consumption structure up, such as information, tourism, domestic services and so on. Thus, we choose to study the structure of service consumption in the central region of china. The development of central services will accelerate the upgrading of industrial structure, promote economic development in the central region, and prevent from collapsing in central regions, which is important to make regional differences narrow.In the paper, we choose to study the structure of service consumption as object in the central region of China. Firstly, we study features of the structure of service consumption and problems in static and dynamic comparative way. Although service consumption-expenditures per capita and the proportion of consumption expenditure increase year by year, the country still falls behind the average level of development and the eastern region. While the consumption proportion of public services is too high, personal services is low. It is unreasonable for service consumption structure. Secondly, we analysis them in terms of supply and demand. Income per capita of the central region increased year by year. Although the price of services is on the rise on the whole, inner structure in the price of services is different. Thirdly, we use panel data from 1996 to 2008 to contrast factors with factors that influence structure based on Keynesian absolute income hypothesis. Income is the most important factor in service consumption structure. According to compare marginal consumption propensity, the residents spend money on medical caring firstly, followed by education, housing, house services and food services after income increased. When we analysis different factors on service consumption expenditure models and log models, we conclude that family burden rate, government consumption Expenditure, Development of service, education is different to affect inner structure. Family burden rate have an important effect on food services, housework services. Government consumption Expenditure is impressed on medical caring and education. Development of services is significant to transportation and communication services. Education of residents influences education service and communication. Finally, government should offer policy guidance and finance to optimize and upgrade structure of service consumption, promote economic development and increase people's income. On the base of developing traditional services, they should encourage people to develop new consumption areas and increase financial input of public services.