The Empirical Study Of Chinese Urban Residents’ Consumption Structure Change

Consumption is the end of the social reproduction, but also a new starting point.The increase of consumer’s demand not only promotes the expansion of productionscale fundamentally, but also provides a strong impetus for rapid economic growth.The consumption structure of urban residents plays a decisive role in nationaleconomic structure. It is formed in all the aspects of operation of the nationalproduction, circulation, distribution, which has been realized by residents. Concretelyspeaking, in the total consumption of households, household consumption structurerefers to the expenditure of the total share of consumer spending and the proportion ofstate. It has very important significance for guiding a rational consumption,optimizing the consumption structure, developing appropriate consumer policy,guaranteeing people’s living standard, stimulating and expanding domestic demand toseriously study the structure of consumption of residents in China and grasp the hotspots of the Chinese urban consumer demand.Based on the theoretical analysis and empirical analysis with the combination ofresearch methods, with China’s consumer characteristics, I have an analysis andresearch of our country town residents’ consumption structure deeply. This paperconstructs ELES model and the panel data model，with the help of STATA andEVIEWS6.0measuring software, based on clustering analysis and model parametersestimation, to analysis China’s urban residents’ income differences impact on theresidents’ consumption structure, on this basis, according to income level differenceon urban consumption structure, to visit residents’ the propensity to consume andconsumption hot spots of the recent years, in order to improve the consumption structure of China’s urban residents and the expansion of domestic consumer demand,thus contributing to economic development.Our resident’s consumption structure change are specifically researched from thefollowing several aspects to this article.This paper expounds the significance and the background of the topic selection,and gives the research progress of domestic and foreign scholars, and introduces theresearch methods of the consumption structure.Secondly, we mainly introduce the connotation of the residents’ consumptionstructure, according to the national bureau of statistics on consumption structure ofthe definition and classification, using statistical methods to analyze the trends of thevarious elements of the consumption structure of urban residents in China. I make atheoretical analysis on the various items that make up the trend from1996to2010theconsumption structure of China’s urban residents.Thirdly, we build the ELES model and have an empirical analysis to the basicdemand, marginal tendency of consumption and income elasticity with the differentincome levels of residents in2010consumer spending and per capita disposableincome data.Fourth, we cluster analysis in the proportion of consumer spending data for1996-2010years of15years, with the help of STATA statistical software. The15years consumption structure change interval is divided into four stages, the first stage:the year of1996-1998, the second stage: in1999, the third stage: the year of2000-2004, the fourth stage: the year of2005-2010. Through cluster analysis results,using panel data model to urban residents different income levels of consumptionstructure we do measurement analysis, at the beginning of using panel data model todo the empirical analysis, the panel data to the stability for inspection, the originalsequence that is smooth panel data, and disposable income and the consumptionexpenditure panel data of the first order differential sequence, In the level of5% significance, rejecting the null hypothesis, we can see that the first difference of theoriginal sequence is a stationary sequence, that is, all is I(1) process. At the same time,we build panel in2005-2010model of the different income level to the inhabitants toanalysis with the stationary data. We conclude that income levels on health care,clothing, household goods and services and equipment education cultureentertainment of consumer spending less affected, income changes on a fewconsumer spending more of the influence of the change is not obvious. In recent yearsthe four categories of consumption project is no longer town residents’ consumptionhotspot, food spending as the most basic consumer spending of residents is thebiggest influence from income, but as incomes rise, its influence degree is graduallyreduced, transportation and communications projects consumers’ spending isimproving as incomes increase, we can see that residents put more revenue into thetransportation and communications on consumer spending.The last part of this paper provides suggestions to improve the consumptionstructure of China’s urban residents with the analysis of the first few chapters.