A Research On The Impacts Of Social Security Expenditure Upon Consumption Of Urban Residents In China

As the global economy growth slows,expending domestic demands by stimulating citizens' consumption is the main driving force to maintain a stable and sustainable economic growth in China.Compared to other representative countries in the world,Chinese citizens' consumption rate is relatively low and has the tendency of becoming lower.Social security is a significant section to protect social stability and promote economic growth in China.Moreover,the expenditure for social security reflects the implementation of China's social security system,which also increases citizen's income and adjusts citizens,uncertainty expectation.In this way,it influences citizen's consumption rate to a certain degree.In 2011,the urban population exceeded rural population for the first time in China.As urbanization continuously moves forward,more rural population will transform to urban population.Therefore,researches on the relations between social security expenditure and urban citizens' consumption,which intends to increase urban citizens' consumption level,have major value.Based on the division of three economic regions in China,this dissertation adopts panel data model to study the effects of social security expenditure on urban citizens'consumption,for the sake of detecting a way to increase urban consumption from the perspective of social security expenditure.This dissertation includes several parts as follows:First,this dissertation organizes the data of urban social security expenditure,urban citizens' consumption,assets stock and disposable income from 1993 to 2013.Then the dissertation further discusses the situation of urban social security expenditure and urban citizens' consumption.These two parts altogether lead to a conclusion that there is some correlation between social security expenditure and urban citizens' consumption level.Then,an analysis on the theoretical backgrounds of social security expenditure and citizens' consumption is given to conclude different means of how the expenditure has affected consumption which comes up with the function theory of social security expenditure.Furthermore,an empirical analysis is made by Stata software,which proves that social security expenditure increases urban citizens' consumption rate significantly.At last,this dissertation proposes suggestions to improve urban social security expenditure policies to better utilize it and satisfy citizens' needs.Thus the goal of increasing urban citizens' consumption level will be achieved.