Research On The Influence Of Urban And Rural Residents’ Income Structure Difference With Consumption Difference

Since this century, with the rapid development of Chinese economy, Chinese residents’living standard has changed dramatically. Income level and consumption level rise in both urban area and rural area. The income difference between urban and rural areas has a downward trend, basic consumption differences gradually are reducing while the other consumption differences are increasing. At the same time, domestic residents’income and consumption are all faced with the many problems: the consumption rate generally lower than the world average, domestic supply and demand structure imbalanced, the declining proportion of residents’ income distribution, the residents’ pessimistic expectations about future economic situation. These problems become the key factors that inhibit the growth of consumption.Consumption, investment and export are the three key elements promoting the development of China’s economic. According to the economic situation of china, the investment has appeared "inflection point", that the economic development is highly dependent on. Influenced by economic adjustment, industrial, real estate, investment and other economic indicators come in the long-term decline. At the same time, contribution of export growth to economic growth declined obviously. And the growths are unstable, monthly and quarterly. While the traditional comparative advantages of China are fading, the new comparative advantages have not been formed. The downward investment and unstable export result in excessive pressure on consumption. So how to promote the consumption undertaking the responsibility of the economic development becomes an important task to China.As the theory of consumption, income is the most important factor that affect the consumption and the consumption structure. To guarantee the continuity and stability of the residents’income growth, as well as the rationality of the income structure, can fundamentally promote the growth of consumption and the upgrading of consumption structure. So the research will focus on the study of income and consumption, this article try to research the influence of the income difference to consumption difference between urban and rural areas from the perspective of income structure, this study has important significance to prefect the existing consumption theory and promote the development of economy.This article selects the dynamic panel data model to do empirical test. It proves that previous consumption difference is one of the main factors that influence urban and rural difference in consumption level and consumption structure. So the rising or decreasing of the difference is step by step. Labor income difference is the main factor of income differences that influence the consumption difference. But the influence coefficient of western area is generally higher than that of the east. Transfer income difference has different influence on different places, rising the developmental consumption differences for the eastern region and the fundamental consumption difference for the western region. Property income difference has a weak affect on the consumption, due to the low proportion in the income difference. And property income most belongs to the rich. They prefer to reinvestment rather than consumption. The influence of income difference on consumption difference changes by different level of economic development.Finally, according to the research conclusion, the writer put forward the following relevant opinions. The policy should be adjusted as the local condition. We should take different measures in different regions. Perfect the property law. Protect the residents’ property rights from infringement. Increase residents’ property income and expand its proportion in residents’ income. Guide residents use the fiscal subsidy correctly. Fundamentally help the poor out of poverty. Keep the reformation Smooth and economic development steady. Vigorously support the development of the Internet financial industry and logistics industry, establish and improve the relevant legal system, protect the legitimate rights and interests of citizens, etc.