A Study On The Impact Of Consumption Environment On China's Aggregate Consumption Growth

Currently global macro-economic growth being weak,Chinese investment and export being limited,thus enlarging domestic demand is apparently still the consensus.Present Chinese aggregate consumption ratio stays low and there shows a huge potential for China to stimulate economic growth by boosting domestic demand.Consumption environment plays an important role in the course of income transforming into consumption,so it is of great significance to study the effect of consumption environment on the consumption growth.From the research level, consumption environment can be divided into micro and macro consumption environment.Confined to the difficult acquisition of micro consumption environment data,so we choose the macro consumption environment perspective.According to the consumption environment index system established by Mao Zhonggen,considering the availability of data,we chose infrastructure environment,consumption financial market environment and social security environment as the macro consumption environment.We researched the current China aggregate consumption growth and consumption environment state,and found that the transition of social security system and employment system has pulled up the uncertainty level of urban residents expenditure and income;and that consumer financial market develops at a low level and with a slow speed,which indicates that residents currently face strong liquidity constraint;and that imperfect and unbalanced infrastructure construction state restrains the consumption growth.We separated China into four parts and carried out a compared analysis,and found that the eastern region enjoy the best consumer environment,followed by the central,the northeast and the west.Based on LC-PIH theory,a dynamic panel data model was established in this paper,using data from Chinese 31 provinces with a time span from 2000-2014 and adopting system GMM method,to do an empirical study on the relationship between Chinese consumption environment and consumption growth.Several conclusions were drawn from above empirical study:1,the higher the infrastructure construction level,financial policy environment and social security policy is,the higher the consumption growth is;2,taking the liquidity constraint into consideration,social security shows a larger effect on the consumption,while consumption credit and infrastructure show a slightly weaker effect;3,taking the income and consumption as endogenous variable,social security shows a larger effect on the consumption,while consumption credit and infrastructure show a weaker effect.So improving the domestic consumption environment can effectively release consumption potential and finally steadily and stably promote economic growth with the supply-side reform,under the severe downward macroeconomic pressure.