The Research On Residents’ Consumption Structure Of Shandong

Consumption structure is not only an important part of the economic structure, butalso is the core field of the research on consumption. It is not only as a key factor indetermining whether national economic and social development is good, but also as a focusin measuring whether the quality of urban and rural residents’ life is high. Therefore, theresearch of the resident’s consumption structure is important to promote the socialisteconomic and cultural construction, and it is significant to realize well-off society also.Based on consumption economics theory, by many kinds of statistical analysis methods,through the theory and empirical research, residents’ consumption structure in Shandongprovince is researched. The purpose of this study is to explore the characteristics and trendsof residents’ consumption structure of Shandong province, to find out the main influencingfactors of consumption structure，and to make some practical proposals about reasonableconsumptions.The main research contents can be summarized as the following several respects.Firstly, with the direction of the basic state policy:"expanding domestic demand toboost growth, adjusting the structure of the people’s livelihood", this paper expounds thetheoretical and practical significance of resident’s consumption structure, and provides abrief review of the literature of the consumption structure both at home and abroad. Basedon these thoughts guiding, the paper turns focus toward the characteristics of resident’sconsumption structure and its influencing factors.Secondly, this paper expounds on the theory of consumption structure in consumptioneconomics to offer the theoretical basis in the empirical studies. Because there are so manysubstantial and profound contents in the consumption structure theoretical writings, one byone not listed. But in many theory contents, the author thinks that should take the meaningand classification of consumption structure as the foundation, take the change rule ofconsumption structure as the core, and the consumption structure reasonable as the aim ofthe study. Therefore, the author only expounds on three aspects above in this paper.Thirdly, by using descriptive statistics analysis methods in Shandong urban and ruralresidents’ consumption level and consumption structure analysis, the consumption structure characteristics and change trend are analyzed through “static angle”,“change angle” and“quality angle”. Specially, from the static perspective, the key of consumption structurecan be seen. From the change perspective, the potentiality of consumption can be seen.From the quality perspective, the reasonable degree of consumption structure can be seen.With a good grasp of these three areas, the development direction of consumption structurecan be known.Fourthly, by using the ELES Model, the empirical analysis of both urban and ruralresidents’ consumption structure in Shandong are made respectively. The consumptionstructure characteristics and its change trend are analyzed through the basic consumerdemand, the marginal propensity to consume and the elasticity of demand. Specially, thebasic consumer demand reflects the most basic needs and the most pressing consumptiondesire at present. The marginal propensity to consume reflects the most vulnerable and themost potential consumer direction. The elasticity of demand reflects the project which isthe biggest influence by residents’ income and the most sensitive to income. Therefore, byusing ELES Model on the three aspects of the analysis, the consumption structure directlyin the most outstanding characteristic is shown.Fifthly, in order to reverse the situation that the residents’ consumption structure isimbalance and the consumer demand is not exuberant, seeking for the consumptionstructure influencing factors is the breach of the solution of this problem. Income isrecognized by most researchers as the biggest impact factor of consumption structurechange. By using Panel Data model the residents’ consumption performance in differentincome levels is analyzed and the effects that income affects the change of consumptionstructure are explored. There are many factors to influence the resident’s consumptionstructure besides income, for example, many kinds of factors of society, economy andenvironment. So the paper uses PLSR model to analyze two important consumptions: foodconsumption and traffic communication consumption. In order to promote consumptionstructure and achieve the purpose of improving the level of people’s life, we can improvethe macroeconomic, social and environmental conditions.Based on the above analysis, the consumption structures of urban and rural residentsin Shandong Province have following features: First, food and transportation consumer in the urban and rural residents’ consumer become more and more important. Second, thefluctuant trends of consumption structure both urban and rural residents have differences.But no matter how to change, the fact that the reasonable degree of consumption structureincreases year by year does not dispute. Third, culture and entertainment is expected tobecome the hot spot of Shandong Province consumer. This is also comport with＂Confucius township, formal state". Fourth, the status of health care is that the basicconsumer demand is low and the marginal propensity to consume is also low. Fifth, live,transportation and medical care consumption is sensitive to income increasing. So risingincome has important meanings to improve structure.The main factors influencing consumption structure cover income, industrial structure,population structure and social security level. Through the analysis of Panel Data modelwe conclude the following. A bigger income can promote consumer to consume in higherlevels. But increasing income seems to work for low-income family, not play a significantrole for high-income family. Through the analysis of PLSR model we conclude thefollowing. The effects of industrial structure on consumption structure are various. Thedevelopment of Primary industry produces positive impacts on food. The development ofSecondary industry produces weak impacts on food. The development of Tertiary industryproduces positive impacts on traffic and communication. The higher the population agestructure proportion, the higher the food and the lower transportation and communication.The higher the population quality structure proportion, the lower the food consumption andthe higher transportation and communication. Expanding coverage of the social-welfarecan effectively reduce the food consumption ratio and improve the transportation andcommunication ratio. Overall it can promote the development of consumption structurediversity.For this reason, to meet the consumption demand of urban and rural residents inShandong province, promote the consumption structure optimization and realizestimulating economic development target, this paper bring the proposes as following.Promote the steady development of agriculture, increase the farmers’ income and improvethe rural consumer ability. Speed up the development of social security；enhance the socialsecurity ability, for urban and rural residents expanding consumer demand solve the trouble back at home. For product sales to be the bridge work, construct the moderncirculation system, develop new circulation industry and promote the circulation ofcommodities and sufficient supply. To develop new market, develop new consumptionhotspot, fully exploit potential consumer market and realize the upgrade and optimizationof consumption structure.There are two innovation points in this paper mainly.First, seek innovation on the research mentality. Both descriptive statistics analysisand ELES model analysis are used in consumption structure research. On the one hand, byusing descriptive statistics method from the static, change and quality three perspectives,the consumption structure characteristics are discussed. On the other hand, by ELES modelfrom the basic requirements, the marginal tendency of consumption demand and incomeelastic three angles the development trend of consumption structure is considered.Meanwhile innovation in the change research of consumption structure, the four kinds oftrends are named: bell-shaped, back-bell-shaped, expanding type and reducing type.Second, seek innovation on the research method. About the research of consumptionstructure effect factors, predecessors focus on one kind of factors. In the paper,consumption structure is put in the whole system of economic, social and environment toanalysis comprehensively by using PLSR. The purpose is to explore the influence of themain factors to change the consumption structure, so as to achieve the change from themacroscopic perspective through the main influence factors and realize the integrity of theresidents’ consumption structure upgrade.