Research Of The Influence Of Social Security System Reform On Rural Residents’ Consumption

Accelerating transformation of the mode of economy development is a strategic choice made by the party and the government at this stage, which not only reflects the deep understanding of the pattern of economy development, but also suggests that expanding domestic demand and stimulating consumption have become an inevitable choice to keep the balanced and healthy development of our country’s economy in a long-term, also is the key to improve the living standard of residents in our country. Under the current economic situation of the "new normal" in China, taking the initiative to adapt to the "new normal" increased need to start the promoting consumption patterns based on improving people’s livelihood. Under the condition of the increasing gap between cities and countryside in our country, the rural consumption continues to be depressed, which seriously affects the expansion of consumer demand in China and also reflects the great potential of rural consumption market in the future. Therefore, pulling the rural residents’ consumption has become a particularly important issue. Government has taken a series of policy measures to pull the rural residents’ consumption in recent years, especially the transformation of the rural social security system, which has completely changed the lacking situation of social security.However, the rural social security as a system which has the function of "social stabilizer" doubtly has an important impact on rural residents’ consumption in China. Studying the impact the transformation of the rural social security system has on the rural residents’ consumption has positive significance for narrowing the gap between urban and rural, promoting the income redistribution of residents, promoting the development and perfection of China’s rural social security system, pulling the rural residents’ consumption level, practicing the principle of "livelihood of the people first" under the "new normal" and boosting the transformation of the mode of economy development.The influence of the rural social security reform on the resident’s consumption behavior has been deeply studied in dynamic perspective since 2002. Firstly, it summarizes the related research literatures and makes Arrangement for the Research findings, which laid the good theoretical foundation for the thesis. Next, the thesis describes the reform history of Chinese rural social security system, which elaborated on the concrete change process of The new rural cooperative medical insurance system, the new rural social endowment insurance system for rural residents, the minimum living security system and the changes of rural residents consumption, which intuitively reflects the same trend between the two. Then, an in-depth theoretical analysis divided the influence mechanism of the rural social security system reform and the consumption of rural residents into the effects of income growth, income distribution and precautionary savings. Interprovincial data from 2003 to 2012 were also employed to validate the estimation ability of the panel OLS and dynamic system GMM theory. The results shows that thesis, from the dynamic perspective, has a deep theory study for the effect which the rural social security system reform significantly stimulate the consumption of rural residents since 2002: each additional yuan of the average level of social insurance in rural area boosts the average consumption of rural residents by about 1.2 yuan, and each incremental percent of coverage of social insurance in rural area promotes it by almost 200 yuan. And on this basis we put forward proper policy suggestions.