The Analysis Of Effecting Factors To Urban And Rural Residents Consumption Started Of Anhui Province

Domestic consumption started is the long-term strategy of economic developmentpolicy and the key to economic transformation. The twelfth Five-Year plan of Anhuiprovince clearly proposed to start urban and rural residents’ consumption, and raisethe effort of domestic demand to pull economic growth. Although the consumptionexpenditure of urban and rural residents in Anhui Province is growing constantly andthe consumption structure is changing superior since the1990s, the overallconsumption is still in shortage.Cointegration and error correction analysis shows: the most important economyfactor of urban and rural residents’ consumption in Anhui Province is the disposableincome, followed by government spending, and the gap of income distribution playdifferent roles to urban and rural residents’ consumption expenditure. The long-termequilibrium relationship of consumption expenditure and its economic factors ofurban and rural residents of Anhui province have a strong impact on short-termfluctuations as a self-correction capability. To deeper examine the disposable incomeimpact of consumption expenditure, this article brake disposable income down intowage income, operating income, property income, transfer income, which, wageincome and transfer income play a significant role to consumption expenditure ofurban residents, and operating income and wage income play a significant role toconsumption expenditure of rural residents. In addition, in order to enhance theprovincial government policy effects of the urban and rural residents’ disposableincome more targeted, the paper continues to analyze the impact of specific factorsof the refinement of income. Finally, this paper analyzes environmental factors’effects to residents’ consumption from the qualitative point of view, such as socialsecurity, consumer credit, urbanization.After the above analysis, this article made a number of measures on how toimprove urban and rural incomes, improve the strength and efficiency of governmentspending, narrow the income gap, improve the social security system and consumercredit policies, accelerate the progress of urbanization as to increase urban and ruralresidents’ consumption expenditure.