Study On The Inlfuence Of Fiscal Expenditure For Supporting Agriculture To Rural Residents’ Consumption Structure In Xinjiang

Since reforming and opening up, China’s booming economy has gained the attention of thewhole world. Because investment expansion is unsustainable and exports are facing theinternational environment of uncertainty, the economic growth mode in China urgently needsto change our traditional mode of economic growth relies on investment and exports toconsumption, investment, export coordination. The healthy and sustainable development ofthe national economy can’t just rely on investment and exports, the contribution of domesticdemand is also important. Since the international financial crisis broke out, the uncertaininternational circumstance made expanding domestic demand become more urgent.Thecentral and local government issued many relevant documents to emphasize the importanceand necessity of expanding domestic demand, and also introduced the corresponding policiesand measures to stimulate the residents’ consumption, especially rural residents’ consumption.The rural market has great potential.Expanding the rural market makes contribution toeconomic development.Firstly, the paper stated the theory of government intervention and consumption function,which laid a theoretical basis for research and analysis. Then the paper analyzed the presentsituation and reason of fiscal expenditure and rural residents’ consumption structure inXinjiang, which provided theoretical support for empirical research. Finally the paper madethe empirical research between fiscal expenditure and rural residents’ consumption structurein Xinjiang using Eviews software. The paper used vector autoregressive model to explore theimpact of fiscal expenditure to rural residents’ consumption structure in Xinjiang. The resultsshowed that the fiscal expenditure crowded in rural residents’ consumption structure inXinjiang. The fiscal expenditure is decreased in turn on rural residents’ food, clothing,housing, other, household appliances and services about contribution of rural resident’consumption structure, and the contribution rate of investment expenditure, consumption andtransfer expenditure to consumption structure of rural residents are decreased. Therefore,based on the theoretically analyzing and practical studying, the paper put forward somepolicies and suggestions.