Research On The Effects Of China’s Rural Residents’ Consumption To Economic Growth

Consumption, investment and export are often referred to as the "troika" of economic growth. Among them, the role of the consumer is very important, and it is the source of stimulating economic growth in our country. Rural consumption market is a full of unlimited potential consumer market and rural residents is the largest consumer groups. The 2009 "Central First Document" points out: "expand domestic demand, the biggest potential in the countryside". The 2010 "Central First Document" pointed out that "expanding rural demand as the key to boost domestic demand". The2015 "Central First Document" released, that our country has 12 years in a row lock "three agriculture" problem in our country. In the current China’s urban resident’s consumption relative saturation stage, how to start the rural consumption market, the rural consumption market to develop into a new consumption hotspot, it is particularly important to promote stable growth of the rural residents’ consumption. This not only is the key of the induced current consumption growing rapidly in our country, and it is the future of the national economy sustained, stable and healthy development of the basic guarantee.Based on the analysis of the rural residents’ consumption situation in China,economic growth, and the effects of rural residents’ consumption on the economic growth, using China’s 31 provinces and cities in 1997-2012 panel data related to examine the influence of the rural residents’ consumption to economic growth. The results showed that either from the perspective of the overall or from the regional rural consumption to economic growth has a greater explanatory power, is one of the important factors to promote economic growth. Then, using a threshold panel model,further investigation on the different levels of rural consumption interval, the rural residents’ consumption differences influence on economic growth. The analysis results show that the rural residents’ consumption level’s influence on economic growth for their own consumption level of high and low presents a significant range effect, only by constantly release of rural residents consumption potential can play its role to promote economic growth.Finally, summarizes the full text and puts forward the policy Suggestions of how to improve the level of rural residents’ consumption.