A Study On The Difference Between The Consumption Of The Urban And Rural Residents In Luoyang

For a long time, China’s economic growth mainly depends on investmentdemand and export demand, the driving effect on economic growth of consumptiondemand is not obvious, the insufficient consumption demand has become thebottleneck of restricting China’s further economic growth. Expanding consumptiondemand is the main way to fuel economic growth, and the residents’ consumption is animportant part of consumption demand. Therefore, the key to boost growth is to startthe residents’ consumption under the new economic situation,Luoyang as the second largest city in Henan province, is a representative of thecentral cities in central China region, is the deputy center city of Economic Zone ofThe Central Plains. In2011, the Luoyang area GDP was270.276billion yuanaccording to the expenditure method to calculate, of which the residents’ consumptionis67.565billion yuan, accounting for the proportion of GDP is25.0%, total capitalformation is160.204billion yuan, the proportion is as high as59.3%, net exports ofgoods and services is1.244billion yuan, the proportion is0.5%. Studies have foundthat in recent years, The total quantity of Luoyang’s consumption demand hasincreased year by year, but the proportion of GDP which the residents’ consumptionaccounts for has seen no obviously increase, at the same time, due to the existence ofurban and rural dual economic system and regional unbalanced development, thedifferences between urban and rural residents’ consumption has been to the high levelof3:1. In2011the rural population of Luoyang accounts for53.87%of the populationof permanent residents in the city, rural residents’ final consumption is19.083billionyuan, accounting for28.24%of the residents’ consumption; Urban populationaccounted for46.13%of the population of permanent residents in the city, urbanresidents’ final consumption is48.482billion yuan, accounting for71.76%of the residents’ consumption, there is a difference between urban and rural residents’consumption. Luoyang, therefore, must take effective measures to narrow the gapbetween urban and rural residents’ consumption, start the residents’ consumption,enhance consumer ability effectively, eventually improve people’s livelihood, boostingeconomic growth.This paper takes Luoyang’s urban and rural residents’ consumption as the researchobject, carries the difference of urban and rural residents’ consumption level andconsumption structure on the descriptive statistical analysis, takes the influence factorswhich effect the differences of urban and rural residents’ consumption in thequalitative analysis, makes a quantitative test to the gap between urban and ruralresidents’ consumption influence factors using SPSS software by establishing theeconometric model, regression analysis results show that the coefficient of urban andrural residents income level, urban and rural dual structure relations and differencesbetween urban and rural residents’ consumption were positively correlated. Theurbanization level, per capita GDP, finance following transaction are negatively relatedwith the differences between urban and rural residents’ consumption. Finally putforward suggestions on narrowing the gap between urban and rural residents’consumption from overall urban and rural economic and social development,urbanization process, increase the efforts of financial support agriculture, increasefarmers’ income and improve the rural social security system.