The Differences And Causes Analysis Of Chinese Farmers' Consumption Level And Structure Among Different Regions

Since the reform and opening up,China's economy has sustained high growth steady and significant changes have taken place in economic structure,economic growth mode change from constrained to demand constraint.Consumption,investment and exports,which are the three demand factors have become the key to stable economic growth in China.But growth mainly depends on the high investment,low consumption and high net exports,relative to stimulate investment and exports on the economy,the contribution of consumption has decreased year by year.For the consumer,the parts of final consumption are household consumption and government consumption.The residents' consumption also has urban residents and rural residents consumption as well as final consumption.The significant decline in the proportion of consumption of rural residents directly led to a decline in the proportion of consumption,and indirectly led to a decline in the contribution rate of economic growth.The rural areas have always been the basis of our market and are the most important consumer groups,though the rural population is declining at the speed of small amplitude in recent years.With the rapid development of Chinese rural economy,and the increasing farmers' purchasing power,the consumption potential of rural areas will be stimulated,which maybe the most reliable and durable power source of Chinese economic growth.The reduced proportion of rural residents accounted for 47.43% in 2012,while the rural residents consumption accounted for 23% of the total consumption,so the rural market is still a huge consumption market.On the basis of qualitative analysis,I analyze the characteristics and influencing factors of consumption level and consumption structure of Chinese rural residents through the establishment of empirical econometric model and obtained the following conclusions.The level of consumption of rural residents in China showed a rising trend and the gap between rural area present a trend,consumption level rises in fluctuation.Engel coefficient of rural residents has dropped from 0.58 in 1978 to 39.3 in 2012,it indicated that the life of rural residents consumption reached the well-off level and the life quality continuously improved.The impact of wage income of rural residents consumption level is greater than the impact of non-wage income to consumption levels.Panel-data model shows that both wage income and non-wage income have a higher marginal propensity to consume,but the marginal propensity to consume is higher than that of non-wage income wage income,so consumption expenditure of rural residents in China are affected relatively largely by wage income.The following conclusions are obtained by the ELES model data in 2012.The propensity to consume various commodities further analysis showed that the marginal propensity to consume of Chinese urban residents was 0.4721 in 2012,namely the income of 47 RMB in 100 RMB will be used for consumption,which indicated the pulling power of the overall income for consumption is clearly insufficient.Income elasticity of demand for transportation and communication,education and entertainment and services,miscellaneous are all greater than 1 in the consumer expenditure,which shows that urban residents for the three growth in consumer spending is higher than other consumer spending growth.The lowest income elasticity of demand for food is 52.7%,which is due to the fundamental role of food.The conclusions from the Panel-Data indicated that the marginal propensity to consume of rural residents in different regions showed greater differences.The expense of rural households depends firstly on living and then on the transport and communications with the economic development in different region.