Research About Impact Of Fiscal Expenditure Of People's Livelihood To China's Residents' Consumption

During the 30 years after the reform and opening-up policy,our country economy has violent development,and the construction of system of socialist market mechanism has been improved, so as to our China's overall national strength. China's GDP surpassed Japan's in the year 2010 and China has become the second largest economy in the world. However,under the affection of the World Financial Crisis and the impact on the world community,the traditional economic growth mode fueled by investment and export is becoming more and more weak,resulting in the way by stimulating domestic demand to promote economic growth has become the necessary security to maintain the sustainable economic development of our country. Under this circumstance, the central explicitly put forward to accelerate transformation of the mode of economic development,from the traditional investment and export-led growth to investment,consumption and export will be coordinated to boost economic transformation, firmly grasp the expanding domestic demand this strategic basis points.In recent years, the requirement of people to the standard of living is increasing day by day,and the government also gradually increased the intensity of people's livelihood fiscal expenditure. At present, lots of scholars are spending many times in researching the people's livelihood fiscal expenditure, however the research literature from the perspective of the people's livelihood finance and people's consumption is relatively small. This article starts from the transmission mechanism of people's livelihood finance and residents' consumption to analysis how the people's livelihood fiscal expenditure affect the residents' consumption by constructing theoretical model and empirical model. Introduction part introduced the research background?research significance?research method?research idea?the difficulties of the study and the possible innovation of the article. In the second chapter we organize and review related literature at home and abroad; The third chapter carries out the theory analysis between the people's livelihood fiscal expenditure and residents' consumption from three aspects,the theoretical basis of people's livelihood fiscal expenditure and consumption of the people's livelihood?the construction of a theoretical model between the two variables, and the transmission mechanism that people's livelihood fiscal spending affect residents' consumption; The fourth chapter analyses based on the actual data to the people of fiscal expenditure and the current situation of the residents' consumption; In the fifth chapter the article carry out an empirical analysis of people's livelihood fiscal expenditure and people's consumption by building panel vector autoregressive model and panel threshold model and draw some corresponding conclusion. In the sixth chapter the paper give the corresponding conclusion by using the theoretical analysis and empirical model build results,including that the people's livelihood fiscal expenditure has obvious crowding-in effect on our people's consumption,and it is not sure whether the non-people's livelihood fiscal expenditure has crowding-out effect or crowding-in effect on our residents' consumption, so in fiscal expenditure policy by increasing the proportion of the people's livelihood in the fiscal expenditure is beneficial to promote residents' consumption, and also increase people's livelihood fiscal expenditure will narrow the income gap between urban and rural areas and increase rural residents' disposable income,meanwhile the impact of the non-people's livelihood fiscal expenditure on them is uncertain,rather than people are uncertain conclusions such as the influence of fiscal expenditure. This paper summarized and put forward the corresponding policy recommendations in the last part of the article.