Analysis Of The Impact Of China’s Medical Insurance For Urban Residents Consumption

Since the reform and opening up, China has made considerable social and economic development, China’s development model gained recognition in many countries of the world. As we all know, the economic and social growth mainly depends on three power sources: consumption, exports and investment. China’s economic growth in the past mainly from the growth in investment and exports, due to the country’s economic infrastructure is poor, such as the construction of various infrastructure is seriously lagging behind, strong demand in the international market, making this country’s economic development model was not able to get the drawbacks enough attention. However, with the pre-production of a variety of over-investment leading to industry overcapacity and the global economic crisis in 2008 led to shrinking overseas markets and other reasons, China’s economic growth met with great resistance. Changes in the economic development model has become increasingly urgent, increased consumer demand in the domestic market to promote economic development has become a new source of power. In establishing long-term mechanism to expand domestic demand, the urban basic medical insurance is a very important aspect, therefore, measure the impact of urban basic medical insurance for urban residents’ consumption is very important.In this paper, basic medical insurance and basic medical insurance for urban residents as the research object, to analyze its impact on urban residents overall consumption level and consumption structure. Through literature review of Chinese and foreign scholars to understand the current situation related research, and on this basis to analyze the effect mechanism of urban basic medical insurance for urban residents’ consumption. Adoption of the 2000 to 2013 time-series data to establish the basic medical insurance for urban residents consumption econometric model empirical analysis, empirical results show that: the basic medical insurance for urban residents overall consumption levels have long-term stability of a positive impact, but this effect coefficient is small. For the consumption structure, the basic medical insurance for urban residents can obviously promote food consumption expenditure and educational entertainment spending. Impact coefficients were 1.24% and 7.31%. Medicare promotion of cultural, educational and entertainment spending is greater than its role in promoting consumer spending on food, which also reflects the type of consumer consumption gradually increased from survival to development, enjoyment and consumption. Basic medical insurance has no significant impact on other consumer spending. Finally, according to the current situation analysis and empirical analysis of the resulting conclusions, corresponding countermeasures and suggestions are put forward: Increasing health insurance funds spending appropriately in order to improve the level of for medical care, Strengthening management the medical insurance fund and improve its operational efficiency, reducing the proportion of premiums paid by individuals moderately. This article hopes to be able to contribute to long-term consumption of urban residents by the above suggestions.