The Analysis Of Rural Consumption’s Contribution To The Economic Growth In Hebei Province And Related Countermeasures

Consumption is one of the motive powers for economic growth.A country or a region for a healthy economic development mode pulls roughly 60% of the overall economic power for consumption and the remaining for investment and export. As the world’s most populous country and a traditional agricultural country, China has a large rural population,thus forming the great potential consumption market. The market has a great influence on overall consumption of the country and even the whole economic operation. This is because with the economic development and upgrading of economic structure, the level of residents’ consumption pattern, structure and change has a more and more impact on the overall economy. Looking back on forty years of reform and opening up, we depend on investment to promote economic development in our country most of the time and relatively speaking, consumption plays a less important part in economic growth.But the importance of its promoting effect on economic growth should not be ignored.One of strategic focuses in the "12th five-year plan",which is ending, is to expand domestic demand, especially consumer demand. In the backdrop of the world economic downturn in recent years and with the quickening pace of rural urbanization in China, the hope to realize economic growth stably is depended on the pull of domestic consumption,especially rural consumption, which is because developing rural market with huge consumption potential can significantly improve the rural economy, driving the development of the economy as a whole.As a traditional agricultural province, hebei province, the rural residents’ consumption has had a huge impact on economic growth and with the constant improvement in recent years in hebei rural residents income level, their consumption patterns and consumption idea have also changed significantly. The improvement of residents’ consumption level and upgrade of consumption structure becomes the main power to promote rapid economic growth in hebei province, but the contribution of consumer spending on economic growth is still low. How to excavate the hebei rural residents’ consumption potential for regional economic development has a positive practical significance.This paper contains five chapters, the first of which analyzes the purpose and meaning of the study, and puts forward the innovation of this paper and the insufficiency. The second chapter expounds the western economic theory of consumption and economic growth from the angle of economic theory, and summarizing the related literature at home andabroad, it discusses the function mechanism of consumption to economic growth. The third chapter discusses the consumption behavior change and the present state of the history of hebei rural residents’, abstracting the influencing factors of rural residents’ consumption in hebei. The fourth chapter, based on the theory and the analysis of present situation, analyzes the contribution of rural resident’s consumption to economy and the degree of pulling economy, and using the regression analysis method of econometrics and VAR impulse response function examines and investigates the contribution of rural residents’ consumption in hebei’s to the economic growth, with the same method demonstrates the relationship between town residents’ consumption and economic growth;According to the previous chapters, the fifth chapter puts forward the countermeasures to promote regional rural consumption and stimulate economy. Using empirical analysis method, this paper analyzed the relationship between the rural residents’ consumption and economic growth in hebei, basing on which it puts forward the measures to stimulate rural residents’ consumption in hebei and bring along the development of regional economy.