The Study On Development Of Rural Consumer Market Of Shanxi Based On System Dynamics

Investment, consumption and export trade are “Troika” which draw a country’s economygrowing. However, the effects of the Troika are not balanced. At present, our province andour country’s sustained economic growth has been mainly driven by investment. In contrast,consumption is relatively weak state, especially the rural consumer demand. Therefore, howto develop the rural consumer market has become an important issue that we need to face.Shanxi is located in central of China, which has a large number of coal. But its economicgrowth is the single way. Shanxi’s domestic demand is serious shortage, especially consumerdemand in the rural areas. Shanxi rural population reached1828.5million, accounting for53%of the province’s total population until2011, but consumption of rural residents is only30%of the province’s consumer. So, the rural consumer market has great potential. Therefore,the study of how to further the development of Shanxi rural consumer market, can effectivelystimulate regional economic development, and promote the transformation of economicgrowth mode.Firstly, this paper has fully demonstrated the background and the significance of topicselection, explained the research trends of the domestic and foreign. Secondly, the systemdescribes the concept of the rural consumer market, consumer theory and the principle ofsystem dynamics modeling, steps and features. Then this article has studied the presentcondition of consumer market of production and life and research restriction reason of therural residents’ consumption. On the basis of qualitative analysis of the factors that affectthe development of Shanxi rural consumer market, the paper has built system dynamicsmodel of the rural consumer market in Shanxi with the Vensim DSS software by systemdynamics theory and methods. We can find that they can boost regional economic development regardless of the production of consumption or consumption by systemsimulation and policy simulation. And the level of consumption of the residents affected bythe income level, the level of circulation, financial credit. Fiscal expenditure on agriculture,social security, education building would affect the raising the level of income of ruralresidents. Finally, according to policy simulation results, the article proposes policyrecommendations for the further development of Shanxi rural consumer market.