Empirical Studies Of The Influence Of Social Security Expenditure On Residents' Consumption

After years of rapid development,the economy of China has gradually experienced a declining growth rate in recent years.In this context,the major report of the Ninth National Congress in October 2017 pointed out that we need to start from improving the operating mechanism of consumption and raising the basic status of consumption in economic development,this not only further clarified the influences of consumption to economic growth,but also requires the government to increase the level of consumption of residents from the perspective of ensuring the consumption system.Under the guidance of relevant policies,the contribution of China's consumer spending to economic growth has also gradually increased.However,now Chinese residents' consumption levels have still not been effectively improved,and the potential for household consumption to pull the economy has not been fully released.There are many factors that affect the consumption of the residents.This paper studies the impact of social security,which is an important factor.Social security as an important way to re-adjust resources and redistribute income,plays a crucial role in raising the level of consumption of low-income groups and stimulating effective internal demand.This paper takes the impact of social security expenditure on residents'consumption as the research object,and uses the combination of theoretical analysis and empirical research to analyze.First,this paper reviewed domestic and foreign literature and sort out its research results;then discuss the concept of China's social security system and fiscal social security expenditure,and analyze the mechanism of social security impact on residents' consumption;Finally,this paper analyzes China's current level of social security and residents' consumption levels,and got the conclusion that the level of social security and the level of residents' consumption needs to be improved.In the empirical research section,this paper uses the panel data of 31 provinces in China from 2000 to 2016 to conduct research.In view of the government's latest summary of the concept of social security-"The child has education,the school has a teacher,the work is rewarded,there is treatment for sickness,there is housing for accommodation,and the weak have help”,this article selects a wide caliber for fiscal social security expenditures including the government's fiscal social security expenditures and employment expenditures,health expenditures,and education expenditures,and study each of its impact on residents'consumption.Through establishing a fixed effect model of panel data,the impact of per capita social security expenditures and employment expenditures,per capita medical and health expenditures,and per capita expenditure on education on per capita consumer spending in provinces was studied.It was concluded that social security and employment expenditures and education expenditures can significantly increase residents' consume.Expenditure on consumption and health care cannot significantly increase the consumer expenditure.In response to this conclusion,the paper further proposes to increase fiscal social security expenditures,strengthen education support,and continue to promote medical and health deepening reforms.It also promotes residents'consumption levels through the gradual improvement of the social security system.