China Urban Residents' Consumption Structure And The Change Trend Of Empirical Research

The three carriages of promoting economic growth are consumption, investment andnet exports. Consumption is the driving force of the economic growth. Stimulatingconsumption is the fundamental measure to keep the rapid economic growth. Comparedwith the developed countries, there is excessive dependence on investment and net exportsin China. China is affected by the global financial crisis in a way. The function ofinvestment and net exports is weakened. The lack of domestic consumption becomesobvious. It is an important task to research the characteristics of Chinese residentconsumption and propose measures to boost consumption in the current economic researchfield. The research on consumption contains not only the amount of consumption, but alsothe consumption structure. The key standard of national consumption level is whether theconsumption structure is reasonable. Consumption structure influence the economicgrowth mode, the industrial structure of a country, social economic structure and systemstructure, etc. It is significant to research the trend and features of the consumptionstructure of our country.The paper gives empirical analysis on urban citizens which are representative. Thepaper uses crosswise and longitudinal empirical analysis to grasp the trend of Chineseurban citizens’ consumption structure comprehensively. Longitudinal empirical analysisdeals with the trend of the consumption structure over the years and a proportion of theexpenditure to total consumption expenditure. Crosswise empirical analysis deals with thetrend of consumption structure along with different income levels of different incomegroups in urban citizens. The paper gives empirical analysis on the consumption structureof urban citizens by Extend Linear Expenditure System to examine the level ofconsumption structure in our country for now.The trend of Chinese urban citizens’ consumption structure has two distinguishedfeatures. First of all, Chinese urban citizens’ consumption structure optimizes and upgradesgradually, from survival consumption structure to enjoyable consumption structure. TheEngel’s Coefficient of our country has fallen dramatically. In consumption the proportiondedicated to subsistence has remarkably decreased, and that dedicated to development andenjoyment has greatly risen. The consumption structure transits to a higher level gradually.Secondly, Chinese urban citizens’ consumption structure appears apparent level sexchanges. The market economy system in our country is still in the developing and improving stage now. The government carried out policies and measures as opening to theworld, deregulation of the price, educational popularization, the reform of medical system,etc. Thus, consumer spending appears apparent level sex changes. In views of thecharacteristics of consumption structure, the government should take the necessarymeasures to promote the upgrade of the consumption structure. It is an urgent desire toraise resident income, reduce the income gap, improve the social security system,strengthen consumer confidences, promote consumer credit services, build a soundenvironment for consuming and guide residents to set up a reasonable consumptionconcept, etc. The continuously optimized consumption structure plays an important role inthe rapid and stable development of economy. It is an important task to promote theoptimization and upgrade of consumption structure in the future economic development.