Chongqing Urban And Rural Residents' Income Distribution Pattern Of Total Consumption Impact Studies

Since the reform and opening up policy, our economic of increasing rate of annulaverage GDP has raised by nine percent. However,it is estimated by scholars that by2010, our Gini coefficient has beyond0.5, which is far higher than the security line.Income is the basis of the consumption. So this income gap is sure to hinder ourwidening of the domestic demand and its effect will be influenced finally.Through allthe references that analyzing the relation between the income distribution and theconsumption, most of them are just the analysis of the influence of income toconsumption, indirectly find out the influence of income distribution consumption,a fewarticles are through analyzing the income gap to the consumption to conclude the factthat the income distribution effects the consumption,they don't analyze it deeply.This paper regards Chongqing district as an example to analyze the incomedistribution and the income gap's influence to the consumption and build up amathematic mode adding the population factor. Then from the income distributesbetween the urban and rural residents to the total consumption and the consumptionstructure, we can see its process of effect, the manner and the degree. From the analysis,we know that the rural resident's marginal propensity to consume is less than that of theurban resident in Chongqing and the urbanization speed in Chongqing is far quickerthan the country's average level. Both of the two lead to the phenomenon that the ruralresidents' income proportion has inverse relation to the total c marginal propensity toconsume and this narrows the income gap between the urban and the rural residents,while it cannot help to expanding the total consumption. Based on this phenomenon,this paper believes that the foremost policy to widen the total consumption inChongqing is not to widen the income proportion of the rural residents, but is toimprove the farmers'marginal propensity to consume and the total marginal propensityto consume in Chongqing by means of enhancing the farmers' social welfare safeguardand reducing their prevent storage and so on. At the same time, by analyzing, theimproved rural residents' income proportion will increase the spending of the foods andeducation aspects. This will not only improve the rural residents' welfare level but alsotheir education spending level so as to reduce the urban and the rural' s income gapautomatically. Therefore, this paper holds that we should narrow the income gapbetween the urban and the rural appropriately to improve the consumption structure andpromote the economic development.The contents' arrangement of this paper is as follows: The first chapter is introduction. This part mainly describes the researchbackground and significance; put forward the research approach, method, the noveltyand the difficulty as well as the literature review. Through the literature analysis, we canunderstand the research status of our nation's income distribution to the consumptionand the existing problem when analyzing. The second chapter is to analyze the status ofthe income and consumption in Chongqing so that we can see the consumption andincome distribution condition of Chongqing nowadays. The third chapter is thetheoretical basis and model building. These will help to analyze the influence of therural residents' income proportion to the total consumption and the consumptionstructure. The fourth chapter is to experience and test the mathematic model in the thirdchapter, which is the core part of this paper. The fifth chapter is the conclusion. Besides,we can get some political recommends accordingly, which are based on the conclusion.