Study On The Impact Of Our Country Residents’ Income Distribution Gap On The Residents’ Consumption Demand

Since the reform and opening up, the problem of insufficient consumer demand inChina has become increasingly prominent, leading to an unfavorable factor restricting theeconomic development of our country. The author thinks that residents’ incomedistribution gap is an important reason for the lack of consumer demand; this paper aimsto further analyze the impact of residents’ income distribution gap on consumer demand inChina.At the beginning of this paper, I have discussed many current researches from both athome and abroad on the impact of residents’ income distribution gap on the consumerdemand, and then analyzed the current situation of residents’ income distribution gap andconsumer demand in China. On this basis, this paper combines theoretical analysis andempirical analysis to analyze the impact of the residents’ income distribution gap of ourcountry on consumer demand. In the part of theoretical analysis, the author first has somediscussion about the impact of residents’ income distribution gap on consumer demand inclassical theories, and then combines with the consumption characteristics of residents inour country, pointing out that through the residents relative income level, uncertaintyexpected, liquidity constraints, bequest savings tendency, the average propensity toconsume and consumption recursion mechanism, the residents’ income distribution gapaffects residents’ final consumption. In the part of empirical analysis, using themeasurement analysis method of co-integration test and granger causality test, the authorhas analyzed the result of the part of the theoretical analysis, and results show that on theone hand, the residents’ income distribution gap of our country is an important reason forthe decline of the residents’ average propensity to consume; on the other hand, thewidening of income distribution gap causes the widening of residents’ consumption levelgap, which seriously restricts the effective operation of the consumption recursivemechanism in our country.According to the conclusion of theoretical analysis and empirical analysis and basedon the purpose of narrowing income distribution gap, this paper finally puts forwardcountermeasures and suggestions to expand residents’ consumption of our country.