The Regional Difference Analysis Of The Impact Of Financial Support On Rural Residents' Consumption

Since 2012, China's economy has entered into a "new normal" period along with a growth stage decline,which is facing greater downward pressure. Investment, exports, consumption as three carriages always drives China's economic growth. However, our country is facing the serious international situation, it is difficult to play a supporting role in promoting economic growth for investment and exports as two important engine. Consumption especially the 8 million farmers' consumption has become the focus of our attention. Fiscal policy as an important means of macro-control plays an irreplaceable role in increasing farmers' income and consumption.This paper is based on the background of the current economy's new normal and considers the regional discrepancy analysis of fiscal agricultural expenditure on rural consumption as the starting point. What's more, this paper is based on the panel data of 2007-2014 years under the new caliber and uses the relevant calculation methods and econometric empirical statistical analysis method to study the regional discrepancy of fiscal agricultural expenditure on rural consumption. First, this paper uses theil index to analyze the regional discrepancy of agricultural expenditure on rural consumption and draw the trend chart. Second, this paper use panel data model to study the regional discrepancy of fiscal agricultural expenditure on rural consumption with the per consumption of farmers as the explained variable, the per income of rural residents and the regional discrepancy of fiscal agricultural expenditure(represented by the Theil index) as the explanatory variable.Through the empirical analysis we can find that: the regional discrepancy of fiscal agricultural expenditure is showing a narrowing trend, the per income of rural residents is still the main influence index of farmers' consumption; the regional discrepancy of fiscal agricultural expenditure and the per consumption of farmers is negatively correlated, the degree of influence of fiscal agricultural expenditure on rural consumption is different in different religions; the eastern region has little effect and the central religion and Western religion have a greater influence. Last, according to the results of empirical analysis, this paper gives suggestions to promote the consumption of farmers from support for agriculture, expenditure structure, preferential policy, grant-in-aid and Social security mechanism.