The Empirical Study Of Relationship Between Rural Residents’ Income And Consumption By The Perspective Of Public Finance In Sichuan Province

The rapid development of our country’s economy is rely on High investment and exports for a long time. The world economic crisis in2008, with exports fell rapidly, high investment outshine others and becomes the engine of economic development in China. The developing mode of investment-led vulnerable to economic ups and downs, seriously affect the sustainable development of national economy. However, consumer can’t get effective development has become a big problem to China’s economy develop, especially the rural residents’ consumption has been in a backward state, for the future development of the economy in our country is both challenge and opportunity. In recent years, in view of the current lack of domestic demand, especially the present situation of inadequate domestic demand in rural areas, Premier li has stressed that advancing the human-centered "new urbanization", which is the potential for future development in our country. China, as a big developing country needs based on domestic demand, and the urbanization is one of the largest domestic demand. This thesis pointed out the future focus and direction of the development of Chinese, a consensus, also implied the theory that is the future of China’s domestic demand lies in the mining of rural residents’consumption potential, urbanization can effectively promote the consumption, expanding domestic demand. At the same time, Mr. Li has stressed the new urbanization is not exploited again for rural residents, but to allow rural residents enjoy the treatment of as people in the city development, public service, etc., through the new process of urbanization, rural residents will enjoy the great achievements of reform and opening-up. It is obvious that to ensure the sustainable development of economy in the future, the key lies in the rural areas and through new urbanization mining consumption potential. Rural residents’ consumption is the engine of China’s future development. How to developing rural consumption potential, sharing the achievements of China’s reform and development for rural residents has become the focus of the current national policy. As an important means of the national macroeconomic regulation and control, public finance has the function of resource allocation, income distribution and stable economy. Aimed at the present situation of the deficiency of current consumption, especially the rural consumption, through the government’s fiscal and taxation policies to guide and expand the rural residents’ consumption, improve the rural residents’ consumption ability and level, in order to keep healthy and sustainable development of economy in our country, become the duty of the public finances. Sichuan as a western economy and agricultural province, it has a big agricultural population, with highly coordinated urban and rural development. My text is based on the empirical study of relationship between rural residents’ income and consumption from the perspective of public finance in Sichuan province. All of my text is divided into five chapters as follows:Chapter1is the research basis. The background and significance of topics, the paper carding domestic and foreign related research literature and evaluation, then put forward the research method and frame structure in this paper. Finally, it summarized the possible innovation and deficiency.Chapter2is a theoretical part. Mainly on the perspective of public finance theory of the relation of rural residents and the consumption of some detailed elaboration, to find out on the relationship between the rural residents income and consumption in our country, first of all with rural residents income and consumption in our country and other related concepts and indexes to explain in detail; Second around on the rural public finance policy related to theoretical analysis, mainly including tax issues related to the countryside and the problems of rural public goods supply were analyzed, and on this basis to elaborate the current main consumption theory.Chapter3introduces situation of Sichuan province. Focus on rural residents’ income and consumption, including the level, structure and the gap between urban and rural areas were analyzed, and thus found the problems and disadvantages existing in the current consumption of Sichuan province. Followed with the analysis on the relationship between the income and consumption, from different types of income, the influence of different income on consumption structure is analyzed, and on the relationship between the rural residents’ income and consumption of Sichuan province have a better understanding. Chapter4is the empirical part and conclusion. First of all, from the long-term relationship of income and consumption for empirical testing, using co-integration and error correction model analysis of the relationship between absolute income and consumption, Secondly, through the income and consumption in recent years, the data regression analysis of the relationship between different types of income and consumption, Again, according to the Sichuan province in recent years the income structure data, regression analysis was carried out on the consumption, as to find out the consumption tendency of various sources of income and the degree of impact on consumption. The empirical results show that income level, especially the persistent income level of resident consumption plays a decisive role, even in the short term consumption have overruns or balance of case, next year will gradually be smoothly; Income structure, income of household operation has the highest propensity to consume and consumption tendency of wage income was declining, and property income and transfer income consumption tendency from negative to positive.Chapter5followed with the research of countermeasures. On the basis of the theory and empirical analysis, combining with the situation of Sichuan province, from the public finance on the current status of development of the consumption, puts forward relevant policy Suggestions:first of all, the structural tax cuts must pay more attention to rural areas; Second, adjust the structure of rural incomes, diversified rural residents’ income sources; Thirdly, is to perfect the rural public goods supply system and way of promoting the economic development of rural areas at the same time reduce the burden of rural residents’ expenditure; The last is to complete the social security system, and Let the rural residents consumption without anxiety.