Research On The Consumption Effect Of Public Products In Guangxi Rural Areas

Under the background of the global financial crisis triggered by the subprime mortgage crisis, on the one hand, the external market demand shrinks, which make a great blow to China’s net export growth, on the other hand, China has experienced rapid growth of nearly30years, the contribution of the elements and the marginal return has been undergoing the process of high-point decline to low-point, without new technology, the production curve is basically unchanged,and the output effect of investment is gradually weakening, at the same time, as one of the three Troika,which pulls China’s economic, consumption shows a strong potential. Studying on how to expand consumption, especially the domestic demand which has over900million population in rural areas, will be practical significance.Guangxi is one of the five autonomous regions of China, but also one of the less developed provinces in the western.the administrative model of Independent regional autonomy,gives more autonomy to local government in the provision of public goods, advantage of the supply side can also be unique.The meaning of Studying on the supply of Guangxi Rural Public Goods is that we can provide policy recommendations for the expansion of Guangxi in rural areas and promoting the growth of rural economy in Guangxi, In this paper, we select three important indicators as the dependent variable, they were Guangxi regional farmers’income, the total supply of public goods and the subsidy income farmers get from the government, and selecting consumption level of rural residents in Guangxi as the dependent variables, and then make sure the modle, and try to make empirical testing, doing quantitative analysis on the supplying of Guangxi rural public goods which contributes to the expansion of consumer demand, this progress can be countermeasures to provide a theoretical reference. Through the analysis, we found that the Guangxi rural productive supply of public goods and non-productive public goods output elasticity of0.97and0.58, respectively, that is, for each additional lyuan, Guangxi rural production and supply of public goods, consumption of rural residents will increase by0.97yuan; for each additional non-productive public goods supply in rural Guangxi, the consumption level of rural residents increased by0.58yuan.which means promoting rural consumption through the provision of public goods has great potentials.Researching consumer characteristics, culture, folklore, and other social factors of Guangxi Zhuang Autonomous Region, making the specific analysis of the current status of the problems about the supply of Guangxi rural areas’public goods, the outcome is that the quantities of public production is not sufficient, the mode of supplying is single, and efficiency of the supply is not high enough. Solving these problems, we can do as the following aspects:1. using the preferential policies to attract social funds to provide public goods in rural areas; to strengthen international cooperation, which can attract foreign capital to improve the quantities of Guangxi public goods supply in rural areas.(2)by optimizing the model of rural public goods supply; abandoning the single mode of supplying, to take a multi-center modes of supply to solve the problem of Guangxi Rural Public Goods Supply which is single.(3)making the requirement of supplying public goods in rural areas more flexible; and providing suppliers a diverse rights incentives to improve the efficiency of the supply of public goods in rural areas.