Credit Card's Contribution To The Chinese Consumer Demand Growth

This paper mainly focuses on the relationship of credit cards and the growth of consumption demand. Since the economic crisis which happened in2008, export of China as one of three engines to economic growth has been hampered a lot. Meanwhile, there exist many limitations for government investment. Under these circumstances, the spontaneous growth of domestic consumption in China is becoming the main driver of future economic growth. Credit card promotes the growth of consumption demand, thus promotes China’s sustained economic growth with its consumption credit and electronic payment functions.In this paper, proceeding with credit card’s dual functions--consumption credit and electronic payment, the author discusses the history and actual situation of credit card. Following that, the author makes a description of the relationship of credit card and consumption theory, and also makes a survey to analysis the underlying relationship of credit card and consumption growth in China. With the survey result and further research, the author comes a conclusion that the cost of using credit card has little effect on credit consumption behavior, but some characteristic of credit card user can have much influence on credit consumption behavior. At the end of this paper, it is supposed that government should guide the credit card market and banks should ease credit cards, so that allow consumers can truly lead the credit card consume and stimulate consumption demand in China.This paper relies on credit and consumer demand related theory. It uses a combination of data analysis and empirical analysis methods to deal with the data, which is obtained through questionnaires, in order to support the conclusions by statistic and scientific validation. Based on previous studies, this paper not only improves the growth of credit and consumer demand theory, but also makes the model more specific and logical. Meanwhile, it is also the first time to make an empirical analysis about the relationship, structure between credit card and consumer demand growth. At the end of this paper, it comes to a conclusion that development of credit card depends on the country’s macro-control, the bank’s full cooperation and the rational use of the individual.