The Study Of Improving China’s Rural Household Consumption

Chinese high economic growth for years is stopped by the2008financial crisis. On the one hand, the European debt crisis and the weak U.S. economy lead to insufficient foreign demand and the slowdown in exports of our country; On the other hand, in response to the global financial crisis, the Chinese government carries out a massive four trillion investment in2008. Under the influence of a new wave of economic stimulus plan, Chinese economic bucks up, and GDP has maintained a rapid growth in the past few years. But due to the consistent expansion of the global economic crisis, the stimulating effect of the fixed asset investment on China’s economy is gradually weakened. Under the circumstances where the slowdown in exports and weak investment demand, the boost of domestic consumption has become an important issue to be resolved to promote the economic development of our country. China’s rural population accounts for a large proportion of our total population and the consumer demand of rural residents will undoubtedly have a lasting impact on China’s consistent economic development. However, the current overall level of China’s rural consumer market is still at a low level and is not conducive to the sustainable development of Chinese economy. Therefore this article has a focus on the overall situation of China’s consumption of rural residents and analyzes the main factors which have influences on rural residents’consumption.This paper is divided into five parts, the first part introduces the background, significance, literature review of existing studies and research ideas; In the second part, we will analyze the current consumer status and potential problems of rural residents from two aspects of consumption level and consumption structure with specific data; The third part analyzes the mechanism of main factors affecting rural residents’consumption from five aspects of income level of rural residents, the income gap between rural residents and urban residents, urbanization, government spending and the rural social security to build up empirical research framework; The fourth part analyzes empirically the affecting factors and construct multiple linear regression model of time series to analyze the impact of rural residents’income levels, income gap, the level of urbanization, the level of expenditure of rural residents on consumer demand of rural areas; In the fifth part, we try to give the relevant policy recommendations to boost rural consumption demand based on the conclude of empirical analysis.