The Research Between Luxury Consumption And Economic Growth In China

The reform and opening-up opens the luxury’s door. Along with Chinese Real GDPper capita is more than3000dollars, the luxury consumption market has entered a periodof rapid development. How to treat the growing scale of luxury consumption, therelationship of luxury consumption and economic growth, are becoming the attentions ofscholars and society. The essay selects the data of1999-2013Chinese economic growthand luxury consumption, Real GDP per capita and the total consumption of luxury for thesequence, establishes VAR model, and analyzes the relationship between economic growthand luxury consumption in China.At the very beginning, it introduces the relevant concepts of luxury, economicanalysis of luxury consumption, as well as VAR model.In the next place, the essay analyzes the current situation of Chinese economicgrowth and luxury consumption. From economic overall development, it analyzes presentsituation of Chinese economic growth; from the market scale, the consumer structure, themarket supply-demand structure, the sale channel and the consumer psychology, itanalyzes present situation of luxury consumption.Then, it selects luxury consumption and Real GDP per capita for time series, throughADF unit root test, cointegration test and Grainger causality test, establishes VAR modeland uses the generalized impulse response function and variance decomposition analysis.It is concluded that economic growth is the cause of luxury consumption; luxuryconsumption has a limited promoting effect to economic growth.In the final part, based on the above analysis and research, the conclusion iseconomic growth is the cause of luxury consumption. From four aspects, includedenterprise, government, society and consumer, the essay puts forward some suggestions toimprove the market of luxury; especially the core is to develop the local luxury industry.