Research On The Problem Of Insufficient Consumption Demand In China Based On Economic Growth

For a long time, investment, consumption and exports are considered troika to promote economic growth. Studying the pace of reform and opening policy up30years the economic development of our country, relying mainly on investment and export led economic growth started to appear tired. So, explore how to improve consumption is the key to solve this dilemma.First of all, this paper expounds the problems of in sufficient consumption in our country at present. Based on this through the combination of the theory and empirical Analysis. Secondly, the correlation analysis was carried out on the consumption and economic growth, analyses the consumer demand elasticity of GDP, contribution rate and pulling rate, according to the results of the present situation of insufficient consumer demand at present in our country, the contribution rate and pulling rate, according to the results of the present situation of insufficient consumer demand at present in our country, the contribution of consumption to economic growth and pull rate is not high. On this basis to granger test of consumption and GDP, then, according to the results of consumption are not GDP’s granger reason, suggests that we lack consumption in our country. On this basis, through a combination of qualitative and quantitative analysis of the main factors that affect consumption.In addition, studies show that residents of current income and income lag. precautionary savings, the GINI coefficient for consumption level of residents have a positive effect of promoting, also the affect size of the three showed a gradual diminishing relationship. However, the conclusion of this reached is contrary to the classical theory of empirical GINI coefficient has a positive effect on consumption, but in the long run, with the gradual improvement of China’s economic development, the relationship between the two areas will gradually return to the classical theory. Of course, this will be accompanied by a decline in the same precautionary saving on consumption impacts. Thus, the future of our country should improve the income level of residents as well as social security system, in order to improve the level of consumption.