Research On The Effect Of China’s Residents Income Distribution Gap On Consumption Demand

At present, China’s economic development has entered a new period of normal.Economic growth rate dropped to a relatively low speed and it has been a problem of enthusiastic that how to regain the speed before. It’s a problem how to find a new engine of China’s economy under the condition of weak exports, excess investment, lack of consumer demand and a big Income distribution gap.It’s a good methord to Increase consumption.On the one hand,it can improve people’s living standards;on the other hand it can also provide new impetus to economic growth.But what are the factors that cause the lack of consumption demand? Maybe Income distribution gap is one of the factors.Firstly,we make a qualitative analysis about the effect that income distribution gap has on consumption demand.Then a empirical one comes.In the end we get a the conclusion that a bigger Income distribution gap makes consumption demand less.