Living Infrastructure、Complementary Effect And Household Consumption

For the past few years, a high household saving rate has been maintaining and a weak import demand from European and American countries has been occurred in our country after the2008big financial crisis. Moreover, fixed asset’s over-investment also caused many negative impacts on our country’s economic development. So there comes a more urgent transformation on our country’s economic growth mode than ever before. As one of the three most important stimulus factor to economic growth, household consumption has become the key element to solve the upper problems and difficulties. Based on this realistic background, we ran a carefully study on the living infrastructure which is the most influential factor towards the household consumption and the most important part of consumption environment.Owing to the closed complementary effect, living infrastructure’s developmental situation and supply condition have a direct impact on the demand of durable goods and household consumption expenditure. Although there have been numerous study on the relationship between household consumption and infrastructure, much of them only focused on its property and considered it as one part of investments. For this reason, they verified the crowed-in&crowed-out effect of infrastructure towards household consumption according to the classical macro-economic growth model but neglected its direct complementary influence. As such, the findings we got from previous literature might not be fully and accurate to some degree.Combined with each living infrastructure’11years indicated data of every domestic province, we used the Random-Coefficient econometric model to estimate its direct complementary effect on household durable goods’consumption. Varying degrees and different directions’influence among each province were discovered from this empirical test. In a sense, we made some progress compared with previous studies for the reason that above work revealed the quantitative relationship between living infrastructure and household consumption expenditure more accuracy and reasonable.Additionally, by the ways of index construction and description of statistical data, we analyzed and compared each living infrastructure’s developmental situation at home and abroad. We found that the developmental level of water-supply, electricity-supply infrastructure got a relative leading position internationally, but others were lagging behind. Besides, an obvious developmental disparity of living infrastructure was discovered in the eastern, middle and western region, especially with respect to electricity-supply and communication facilities.Conclusively, this paper showed lights on the possible guidance for the development of living infrastructure as well as potential references to reduce the gap between households’ consumption in different regions and promote the overall level of consumption.