An Ampirical Analysis Of The Impact Of The Rural Consumer Consumption Demand By Income, Savings And Urbanization Rate

Since the reform and opening up, China’s economic maintained rapid andsustainable growth, the rate of lower consumption contribution stimulated economicgrowth. In recent years, China’s consumption rate remained low, not only below theworld average, and also lower than the average of low-income countries. China’sconsumption of low has attracted enough attention from the government. WenJiabao pointed out that actively expanded domestic demand, especially consumerdemand, and enhance the role of domestic demand in driving economic growth. Oneof the important factors of China’s current lack of effective consumer is insufficientconsumption of rural residents. China, as a developing country, the rural market isthe largest and the most basic market and has huge consumption potential. In thecase of urban residents ’consumption is relatively saturated, the lack of new hotconsumer spots, how to improve rural residents’ consumption and start the ruralconsumer market, it become extremely important in the background of the currentglobal economic crisis and the European debt crisis. This is not only the momentaryneeds in order to cope with the economic crisis, and requirements to promotelong-term stable and rapid development.In this paper, choosing the rural residents of Hebei Province as the object ofstudy, we analyzed the rural consumer lever of Hebei Province and its influencingfactors by using the theory of consumer economics and qualitative and quantitativeanalysis methods in order to provide theory and policy basis to start the ruralconsumer market.This article consists of the following four parts: the first part includes the firstchapter which introduces the research background and significance, reviewedresearch results at home and abroad, proposed research methods and technologyroadmap and research innovations and shortcomings. The second section includesChapters II and III,the second chapter introduces the theory of residents consumption at first. Chapter III overviewed consumption situation of rural residentsin Hebei Province, analyzed from two angles of the consumption level andconsumption structure. The third section, includes chapters IV and V, is the core part.Chapter IV analyzed influencing factors of consumption of rural residents byconstructing a theoretical consumption model, and gained three main factors basedon the analysis of the data obtained through the consumption function model. Thefourth section includes the sixth chapter which summarizes the conclusions of theprevious chapter, and provided the suggestions on how to improve the income ofrural residents, improve the social security system in rural areas, and to speed up theprocess of urbanization based on the previous conclusions.Based on the current consumption situation, it can be seen that the consumptionof rural residents in Hebei Province is not good. Although consumption of ruralresidents in Hebei Province situation has improved significantly with the per capitadisposable income increases, the marginal propensity to consume is declining. In themultiple factors that affect the consumption of rural residents in Hebei, income,savings and urbanization have a great effect on the onsumption of rural residents inHebei Province. Income is the basic factors. The consumption of rural residents inHebei has a great sensitivity current income; consumption mainly depends on thepermanent income; past consumption has a great influence on the currentconsumption. Since the reform and opening up, the level of per capita income of ruralresidents in Hebei Province improved gradually, at the same time, the gap of incomeis widening year by year, which is bound to produce a negative impact on the increaseof consumer consumption. On the other hand, the exist of Uncertainty made theprecautionary saving motivation of farmers increasing. The saving of rural residentsno longer is post-consumer savings, but results of an awareness of the initiativesavings, to some extent, which also affected the expansion of the consumption inHebei Province. Recently, although urbanization developed rapidly, there is a time lag for the impact of the consumption of rural residents, which is bound to affect theexpansion of the rural consumer consumption.In order to improve the level of consumption of rural residents and create thebalance conditions of supply and demand to further develop economic, there issuggestions following: increasing the income of rural residents and adjusting thedistribution of incomes; perfecting the social security system in rural areas andimproving the expectation of the rural consumer; implementing urban-ruralintegration strategy and speeding up rural development strategy to speed up theprocess of urbanization.