Theoretial And Empirical Study On Expanding Rural Consumption Of Urban And Rural Two-way Circulation System

The thought of "heavy production, light circulation" has exacerbated the formation of China’s two of the urban and rural traditional economic structure system from the reform and opening up to the17th National Congress of the cpc. While two of the urban and rural traditional economic structure, leading to the polarization mode of the urban industry developed and the rural industry underdeveloped,increasing the economic differences between urban and rural areas, and making the consumption of rural residents is far less than the city residents. As everyone knows, developing urban and rural economic which narrow their gap and have a great significance influence on establish a harmonious society.It become an important way to realize China’s steady economic growth.This article conducted a theoretical and empirical study on expanding the rural consumption of urban and rural two-way circulation system. Firstly, definition urban and rural two-way circulation system. From the city of commodity to enter the rural market, and from agricultural products to enter the city market to analysis the organization structure of urban and rural two-way circulation system. Secondly, through the construction of urban and rural two-way circulation system to analyse the mechanism of expanding the rural consumption. Thirdly, this article chooses the relevant data of30provinces about the two-way circulation of index system of urban and rural、 rural index level of consumer and control indicators from2003to2012, through the model of panel data, and verify the mechanism of urban and rural two-way circulation system to expanding rural consumption. This article conduct the robustness of the estimation results for the urban and rural two-way circulation system, through principal component analysis by Stata software, obtain the comprehensive evaluation score of urban and rural two-way circulation system, which further verify the mechanism of the urban and rural two-way circulation system to expand rural consumption. Finally, on the basis theoretical and empirical annalysis of the urban and rural two-way circulation system expand rural consumption, putting forward the corresponding policy recommendations.