The Research On The Potential Of Farmers’ Consumption In Hebei Province Based On SEM Model

Sound and rapid growth of economy should be driven by investment, consumption and export, but consumption that stimulates economic growth has always been in the weak position in China. Nowadays, in the new normal stage when Chinese economy slows and the contradiction and bottleneck of economic development are prominent, stimulating residents’ consumption potential is the key to the policy of structural transformation of the economy and promoting development through reform. Although Hebei Province has huge rural population proportion, living standard of farmers is constantly improving in recent years. As a result, consumption potential of farmers is also enlarging with the increase of consumption demand. It is of great significance to free consumption potential of such kind of people and drive continuous growth of economy in Hebei Province by study on rural consumption potential in Hebei Province.In the paper, according to the analysis and summary of domestic and overseas research status of consumption potential, five factors that had influence on consumption potential of farmers were concluded, respectively consumption ability, consumption concept, consumption tendency prediction, consumption environment and social security. Secondly, questionnaire was designed based on these five influence factors to obtain the consumption status of farmers in Hebei Province, family consumption condition and perception of farmers towards these five influence factors. It took advantage of the firsthand data to analyze the consumption status and hotspots of farmers in Hebei and second-order confirmatory structural equation model was established to get path coefficients of various influence factors. According to the path coefficients of structural equation, effect of various influence factors on consumption potential of farmers in Hebei was discussed. The result suggested that social security had little impact on the consumption potential; influence of income in near future, high-quality consumption, travel consumption in near future and network facility were prominent.Therefore, we proposed countermeasures and suggestions to stimulate the consumption potential of farmers in Hebei Province from income security, consumption concept of farmers, promotion of online shopping and consumption hotspots.