The Research On The Rural Consumption Under The Background Of Urbanization

As an important underlying factor driving China's economic growth,rural consumption's effect is not very effective since the last few years.Currently,the CPC Central Committee and the government are promoting urbanization actively.Consequently,in-depth researching on the effect of the nowadays urbanization of China's rural residents' consumption has important theoretical and practical significance.First,the paper summarized previous theories,and then describes the theory of consumption.Focusing on elaborating the Keynesian absolute income hypothesis,the relative income hypothesis,permanent income hypothesis,the deposits of precautions hypothesis and life-cycle theory,the paper laid a theoretical foundation for the following theoretical analysis.Firstly,the paper elaborate urbanization and farmers 'consumption of our country,then analysis the urbanization effect on rural residents' consumption on tow dimensions:income factors and non-income factors.In the analysis of the income factor,the paper draw up consumption function from 2001 to 2011 of China's rural residents using cross-sectional data,and find that farm income rather than operating income of agriculture,is the main factors affecting the consumption of China's rural residents.In the perspective of non-income factors,the paper specifically discusses the effect of urbanization to environment of rural consumption,analyses changes of consumer behavior of farmers in the context of urbanization.In the empirical analysis,the paper use vector autoregression model,dynamic analyze the impact of urbanization on rural residents' consumption,concludes that there is a cointegrated relationship and common trend between urbanization rate and rural consumer expenditure.In short-term,there is a slight effect of urbanization on rural consumption,and the urbanization process will not increase the rural consumption;but in long-term,the rate of urbanization in rural consumer expenditure has a significant impact and influence.Finally,the paper analyze the causes of empirical results combined present specific policies and system design.And for income and non-income factors,the paper makes recommendations on how to improve farmers 'income and expected expenditure in the process of urbanization,widening the sources of revenue of farmers,enhance consumer confidence and improve farmers' consumption capacity.