The Influence Study Of People’s Livelihood Fiscal Expenditure On Urban And Rural Residents’ Consumption Structure

Our country entered into a new stage of development with the rapid development of the economy since the reform and open policy. It requires that we must pay more attention to the interests of the broad masses of the people and people’s livelihood,in the process of economic development.In addition, the world financial crisis in recent years highlights the China’s unhealthy economic growth way that the development of our country’s economy depends on exports and investment.lt has become a problem we need to be addressed that how to boost domestic consumption to promote economic development.None of these two questions be solved,At present our country current situation now.The people’s livelihood problems and consumer demand is, indeed, interaction and influence:The increase of people naturally inputs improves the income of the residents and then promotes the residents’ consumption.The increased Consumption will led to further increase in the economy in turn,driven by increased fiscal spending.Thus forming a virtuous circle.It has become a focus of attention in our country that how to perfect the people naturally fiscal spending,prompt residents’ consumption growing rapidly,so as to promote the economy,especially for poor regions such as the western region of China.Combining the related theory, we discussed the transmission mechanism of people’s livelihood fiscal to the residents’ consumption in this paper, based on the careful analysis of the western region in China after people by nature and the status of the residents’ consumption of fiscal expenditure.It thinks that fiscal expenditure on the residents’ consumption is by two means of increasing the income and reducing the precautionary saving to work. Then set up a panel data econometric model to study the The correlation between the people’s livelihood fiscal and the consumption structure of urban and rural residents in the western region, especially the Education, health care, social security and employment fiscal spending,with the introduction of residents income and consumption index as the control variable.Get the conclusions:Firstly, people’s livelihood fiscal will promote the consumption of the residents in western,in the short-term effect, health care spending is the best one to boost the consumer spending in the short term,then the ducation spending, the last one is social security and employment fiscal spending. Secondly,in the point of impact, the influence of people’s livelihood fiscal on urban residents’ consumption is greater than on the rural residents’ consumption. Thirdly,Education expenditure of urban residents in the western areas is greater than the influence of the impact on the rural residents; contrarying to the influence of medical and health spending, the impact on rural residents’ consumption is greater than the urban residents;the effect of social security and employment spending on urban residents is stronger than on the rural residents.Finally,putting forward the corresponding policy recommendations according to the relevant conclusion and proposed the further research direction.