An Empirical Analysis Of The Change Of The Consumption Rate In China And Its Influence Factors

Affected by multiple factors, the consumption rate of residents have been low, and significantly lower than the world average. In the current domestic and international situation, the residents’ consumption has become a key factor which restricts the sustained and healthy development of China’s economy,expand consumer demand, improve the consumption rate, consumer pull function on the economic growth is of great significance.Firstly, this paper describes the present situation of our residents consumption rate. Through to the resident consumption rate in China since 1978 time-series data of the longitudinal comparative analysis, we found that the consumption rate of residents overall downward trend, especially decline significantly accelerate since 2000. Through the consumption rate of residents with the world average level, the main representative State, part of the per capita GDP about $ 1,000 in the horizontal comparison of countries as well as the standard model of Ciannelli, we were indicative of serious low consumption rate of residents, but also to further expand the gap trends. Through domestic horizontal comparison between the eastern, central and western regions, found that the west consumption rate of residents is the highest, the east is lowest, overall are declining, but the decline is the fastest in the west, and the slowest in the east, gradually narrowing the gap between regions.Secondly, this paper analyze the factors affecting the consumption rate of residents in our country. From the provincial perspective by decomposition, found that the real causes of reduced consumption rate of residents is generally lower consumption rate of all regions. Through theoretical analysis and regional consumption rate influence mechanism analysis, find the factors which affect the rate of resident consumption in our country are the consumption habits, level of economic development in the region, the government of people’s livelihood expenditure, the level of urbanization, urban-rural income gap, prices level, population structure etc. Then, on the basis of theoretical analysis in this paper by using Chinese provincial panel data using the unit root test, the difference of GMM estimation, autocorrelation test and Sargan test for influence factors of Chinese residents’ consumption rate to an empirical test, to measure and compare the effect of each factor on the residents consumption rate, the empirical analysis results in conformity with the above theoretical analysis.Finally, on the basis of the above research, on how to improve the residents’ consumption puts forword the corresponding countermeasure, expect to improve the status quo of residents consumption rate, thereby stimulating the sustaind and healthy economic growth.