An Analysis Of Influencing Factors Of China’s Urban Durables Consumption

In the background of Chinese macroeconomic policies of expanding domestic needs, durables have the following characteristics:one-time expenditures, purchase and consumption time asynchronous and space separability. Durables, non-durables consumption should be studied separately. Developing the consumption of durables can improve living standards of the residents. So, through the study of interactive mechanism of various factors of the residents of durables consumption in China and do regional comparisons, this paper hopes to find problems and proposes some policy suggestions in order to solve status quo of lacking of domestic demand in China. In the meantime, there are huge differences between urban and rural areas, through researching on institutional reforms in China in the late20th century; this paper finds out that the spheres of influences are concentrated in urban area. In order to ensure rigor of the study and make the condition close to real situation, this paper choose urban residents as research sphere of durables consumption in China.First, through the summary of scholars’achievements, finding out that existing research mainly analyzed from microscopic point of view. From the macro perspective, based on scholars’research on durables and the results of microeconomic impact research factors, this paper chooses macro proxy variables of microeconomic factors to do research on urban residents’durables consumption in China.Second, this paper divides the influence factors of durables into economic and non-economic factors,(1) economic factors including disposable income, commodity prices and product structure; Non-economic factors including institutional change, population and demographic structure, consumer psychology, consumer habits and consumption environment.(2) economic factors are main influential factors of durables consumption, while non-economic factors influence on durables in a more diverse way.Last but not the least, this paper use macro panel data on durables consumption of urban residents in China, summarizing on regression results and do theoretical analysis of the impact factors, getting the following conclusion: empirical results of economic impact factors of durables consumption of urban residents in China are consistent with theoretical analysis. As the imbalance of regional development in China, some non-economic factors such as institutional change leads to regional differences.