Research On Pulling Effect Of Chinese Rural Residents Consumption To Economic Growth

Investment,consumption,exports,are often referred as "Troika" to spur economic growth.At present,investment in China’s economic growth is still dominant, high investment and low efficiency of the extensive management is still exist, economic growth has not had a fundamental change. In response to the slowdown of economic growth, the country has taken active measures to expand domestic demand, adjust structure. GDP growth rate of consumption in recent years has overtaken investment, indicating its role in promoting economic development are promoting.Thirty years of reform and opening up, with the acceleration of the development and urbanization of our society, rural residents’living standards are gradually improved, consumption is increased year by year, but the economic growth rate of rural residents’ consumption is declining.China has a large population,the rural population has accounted for half, but the consumption level of rural residents is far behind the level of consumption of urban residents,while,it doesn’t get rid of mainly subsistence consumption patterns, the consumption level is still low, the consumption structure is still irrational. But the stimulating effect on the economy of rural residents’consumption has drawn increasing attention, many scholars have different views and conclusions. Therefore, there is a need for further analysis of Chinese rural residents’ consumption in pulling effect on economic growth, for researching on the status situation of rural economic growth, for the analysis of the causes of insufficient consumer demand in rural areas, how to expand rural consumption through a number of measures to be able to make our economy grow fast.In theory,this paper describes the mechanism of consumption pulling an effect on economic growth,it proved that domestic economic growth depends on expanding domestic demand,consumption in rural areas has an important role in China’s dual economic power.In statistics,it describes the state of the rural consumer demand stimulating effect on the economy of the analysis, the consumption is rural areas has slow growth in economic, contrast to urban residents consumption, it has maintained a large gap, the role of economic growth continues to weaken. For rural residents occupied a larger proportion of the population, this type of economic pull effect is not normal and needs to be improved. In other words, the consumption demand of rural residents is inadequate.Then, In order to verify the conclusion of the theoretical part, the paper according to the variable data from China Statistical Yearbook 2015 released by stationary test variables in first difference modeling,multivariate linear regression,LM test, heteroscedasticity test, Granger causality relations methods to analyze he relationship between consumption of urban residents, rural residents’ consumption, government consumption, gross capital formation and net exports of five indicators and economic growth. The final conclusion is:In the long run, The effect of Chinese rural residents’ consumption stimulating economic growth is apparent. Compared to the results of statistical description, it is not consistent. The main reason has been the road of rural labor-intensive industries, as China’s economic is developing, labor-intensive industries is running through the first, second and third industries.In fact, the contribution of rural consumption to economic growth is significant. Then the paper analyzes the reasons of lack of consumer demand are low income, low level of social security, imperfect consumer market and labor flow patterns of migratory birds.Finally, countermeasures are given about how to expand rural residents’ consumption in order to achieve faster economic growth.