The Research Of Relations Between The Circulation Industry Development And Residents’ Consumption

In currently, our country is from depending on investment and export driveneconomic growth model to depending on consumption, investment and export drivencoordination model of economic growth. And expending domestic demand is the mainforce of our country’s economy growth. Production, distribution, exchange andconsumption are four links of social reproduction. Exchange and consumption have aclose relationship. If distribution is assumed relatively constant, the relationship betweenconsumption and exchange is equivalent to the relationship between consumption andcirculation in the modern market economy conditions. Circulation and consumption affecteach other. Therefore, in the background of fast consumption upgrade, analysing therelation between circulation industry development and residents consumption,accelerating the process of our country’s modern circulation industry development, have avery important practical significance for expanding domestic demand. This paper used themethod of combining theoretical and empirical analysis, analyzing interaction principlebetween circulation and consumption, the specific interaction ways between circulationindustry development and residents’ consumption, the degree of circulation industrydevelopment impacting on the residents’ consumption. The results are, circulationindustry development and residents consumption have interaction relationship, circulationindustry development well can promote residents consumption growth, and residentsconsumption growth fastly can stimulate circulation industry development; there islong-run equilibrium relationship between the circulation industry development andresidents consumption. And suggestions were put forth according to the results of analysisand the realities of our country’s current circulation industry development.