The Research Of People’s Consumption In Our Country By Introducing Population Age Structure Variables

For a country’s economic development, the consumption is worthy of attention. Since the1978economic reform and opening up, China’s economic development in general has made remarkable achievements, meanwhile people’s consumption rates (especially in the last two decades) in the downward trend. In the long run, expanding consumption is particularly important for the healthy operation of a country’s economy. Since China has adopted family planning as national policy, the population age structure has undergone a substantial transformation from the young-oriented society to an aged society. These changes, in the macroscopic point of view, affect Chinese consumption rate.In this study, we make a systematic review of the Western Theory of Consumption Function and domestic scholars’study on Chinese consumers’ behavior. In fact, in our country regardless of economic or population age structure, the eastern, central and western regions have a lot of differences. This paper is to study whether the age structure of the population in the period1989-2010is the impact of Chinese people’s consumption, what the differences among the impact of the three major regions, as well as the dynamic process of the consumer.The results showed that the spending habits affect Chinese people consumption is very obvious. Meanwhile,in the past20years the population age structure is resulting in decreased rate of consumption. Child dependency ratio is basically a positive impact but not so obvious impactThis paper presents a proposal to our government in expanding domestic demand, should make attention to our country’s population age structure,especially the aging population. To improve people’s consumption ratio, our government should create a favorable institutional and policy environment for consumption such as to improve the social security system, to raise awareness on the permanent income expectations, ets.