Study On The Consumption Problem Of Rural Residents

Three decades' reforming and opening up policy has enormously promoted Chinese economic development,but also changed rural China totally and the living standards of rural residents have been significantly improved as well.However,insufficient domestic demand in recent years is becoming a bottleneck restricting economic development.The troika which is supposed to promote economic development is out of proportion.Instead,economic progress is heavily reliant upon investment as well as export whereas consumption lags far behind.Affected by the Urban-Rural dual structure,insufficient consumption of rural residents is the most important constraint leading to insufficient consumption.Therefore,our party and government put forward prompt policy of expanding domestic demand and carried out a series of measures to stimulate rural consumption.On the basis of reviewing consumption theory,this paper,by sorting and analyzing the data from the Statistical Yearbook,combines the method of comparative static analysis and dynamic analysis and studies the consumption level and structure of both urban and rural residents,thus reaching the conclusion that the propensity to consume of rural residents tends to be comparatively lower.Based on three main bodies,namely,rural residents,businesses and governments,this paper will study the reasons for depressed rural consumption and propose several reasonable,practical suggestions and measures.