The Influence Of The Income Structure Of Rural Residents’ Consumption

As one of the economy troika, investment plays an intermediary role, and exports are squeezed. So economic growth must depend on the drive of consumption. It is well known that income is the key factor that affects consumption. In recent years, China’s rural residents’ income source structure has been constantly changing. With the accelerating urbanization process, a large number of surplus rural labor force transfer to cities, so salary income increases obviously. At the same time, the dual operation system in our country’s system and the rural collective land property rights reform, provide the system guarantee and the power for land circulation, thus increase the property income of farmers. In addition, since 2004, when the government began to implement direct subsidies to grain producers as the core of the agricultural subsidy policy, the transfer income of rural residents increase. When farmers’ income source structure changes, at the same time, rural residents’ consumption level and consumption structure also change. On the one hand, the contribution rate of rural residents’ consumption to economic growth has been falling. Rural residents’ consumption growth has been 7.70% by 2010, yet the contribution rate of economic growth was only 3.40%. On the other hand, the consumption structure has also been in constant change since 2004. China’s rural residents’ basic consumption overall showed a trend of decline in the overall, at the same time, under enjoyment consumption and development-oriented consumption as a whole is on the rise. But based type consumer spending still accounted for the largest proportion in the residents’ consumption expenditure, and the consumption of residents is still in a lower level. In addition, China’s eastern, central and western region’s economic growth is always present the unbalanced to the characteristics of regional rural residents income level. And different income structure, together with their different characteristics and consumer preferences, consumer demand of rural residents in different regions there is still a big gap between consumer demand.In order to do this, this paper first described the development of the rural residents income source structure and the change trend, then, the consumption could be divided into three categories: basic type, rural residents’ consumption enjoyment type, developing type. And it portrays the rural residents’ consumption structure change and upgrade process. Next, combining with the precautionary savings theory and mental account theory, it further analyzes the influence mechanism of the source of income on rural residents’ consumption structure change. Finally, based on the provincial panel data from 2004 to 2013, this paper analyzes from two aspects: the overall effect and regional differences, empirically analyzes how the income influences rural residents’ consumption structure change. Through a series of research, we found that: 1) the ratio of the rural residents’ salary income, property income, metastatic income has been increasing, and the rising channel is obvious. Also the consumption structure is in the process of changing, and the ratio of enjoyment consumption and development-oriented consumption has been increasing, and rural residents’ consumption structure upgrading trend is obvious. In the regional level, the regional consumption structure presents unbalance character. The consumption structure of eastern region more optimize, and the midwest is evolving, but still relatively backward. The changes in the proportion of the wage income of rural residents and family business income will influence the rural residents’ consumption level and structure through the path of consumption environment, consumption idea and change of age structure. And the change of the ratio between operational property income and family income, transfer income and family business income proportion may influence the rural residents’ consumption level and structure through the path such as income uncertainty, mental accounts. 3) In the overall level, the influence of change of the proportion between rural residents’ property collection and family business income on rural residents’ consumption is the most obvious, metastatic income takes second place, wage income is minimal. In addition, the effect of change of the proportion between salary income, property income, metastatic income and family business income variation on each component of consumer spending is obvious inconsistent. 4)In region level, on the other hand, the effect of the change of proportion between salary income, income of property income, metastatic and family business income is more obvious on rural residents in the midwest, especially in the central, western and eastern region coefficient is far less than the midwest. On the other hand, the influence of the income gap between urban and rural areas on rural residents’ consumption and consumption of each component is in different level. In regional level, the effect in central region is the most significant, and west, east is relatively small.