Research On The Relationship Between Income Structure And Consumption Growth Of Urban Residents In China

With the deepening of the reform,China's economic development has entered a different historical period—"new normal",the living conditions of residents in our country continue to improve,and residents' per capita income level increase significantly,so is the total amount of per capita consumption.However,the rate of Chinese citizen consumption,that is the proportion of total consumption in GDP has been declining continuously,although the government has taken a series of policies to expand domestic demand and consumption,but with little success,the average propensity to consume(APC)is still showing a downward trend.Consumption,as one of the "three carriages" of driving the economic growth of a country,plays an important role in the rapid and healthy development of national economy.The consumption of urban residents is an indispensable part of national consumption,and the improvement of consumption level and the optimization of consumption structure will have a significant impact on the national situation of consumption.The improvement of the residents' income level,especially to ensure the rationality of income structure,is an important measure to expand domestic demand.Therefore,it is of great practical significance to study the relationship between urban residents' income structure and consumption growth.This paper,based on the summarizing the research on the relationship between income and consumption growth both at home and abroad,firstly analyzes the income(including income source and income hierarchy)and consumption structure of urban residents in China.At the same time,through the construction of multiple linear regression model,the paper explains in detail the internal relationships between the consumption expenditure of urban residents and the four variables(containing wage income,operating income,property income and transfer income)of the residents'income.In this paper,the extended linear expenditure system model(ELES)is used to study the relationships between variables of disposable income and consumption structure of urban residents of different income groups in china.Mainly to the following conclusions:First,wage income and transfer income has been the main source of income of urban residents and wage income in the variables of income accounted for the highest proportion.Although the proportion of property income is low,but the overall fastest growth.Second,wage income has a significant impact on food,clothing,transportation and communications,and other consumer spending,with the most significant level of food expenditure.The influence of operating income only for food and other consumer spending is significantly;While the property income has an impact on living,transportation and communication,and other consumer spending,with the greatest impact on living expenses and a negative correlation with other items of expenditure.The effect of transfer income on traffic and communications expenditure is greater than that of the proportion of the impact of household equipment;Third,China's urban middle-income groups(including three income groups:the upper middle,the middle,the lower middle)accounted for a low proportion,only more than 50%,while the high-income group accounted for 40%.The income gap between the various strata is obvious,the income distribution policy needs to tilt to the income class below medium;Fourthly,the difference between the marginal propensity to consume,elasticity of consumer demand and the basic consumption expenditure is obvious.Finally,the paper puts forward relevant policy suggestions from four aspects:optimizing the income structure,improving the consumption environment,deepening the reform and perfecting the social security system.