Research On The Changing Of MPC And Consumption Structure Of Urban And Rural Citizens In China

Since the financial crisis,the international economic situation has not been optimistic,and China's import and export growth has slowed down,there is an urgent need to change the situation that relying on overseas demand to fuel economic growth.In the face of this pressure,consumption is the main force of economic growth,should play a greater role in stimulating economic growth.Understanding the marginal propensity to consume and consumption structure of different groups in urban and rural areas in China can provide a basis for better understanding of the problems existing in the consumption situation,so as to formulate economic policies which are more consistent with national conditions to increase the consumption of residents.Futhermore,it is helpful to improve the overall demand structure,and to promote the health of growth of the national economy.Based on the marginal propensity to consume of urban and rural residents,this paper uses the data of CGSS2010 and CGSS2008 provided by National Survey Research Center of Renmin University of China.And this paper carries out the horizontal and vertical analysis to the marginal propensity to consume of different groups of Chinese urban-rural residents in 2010 and 2008.In the meantime,this paper tries to find the changing characteristics in the structure of household consumption in rural and urban areas through studying on the consumption structure of urban and rural residents in 2010.In addition,this paper also carries a quantitative test on several major variables contributing the consumption of urban and rural residents and provides the relevant explanations.The study shows that:Firstly,in 2010 and 2008,Chinese urban and rural residents'marginal propensity to consume and income level overall shows an inverted "U" type,and narrowing the income gap between different groups will benefit the improvement of the national total demand level.Secondly,the consumption expenditure of urban and rural residents in China is positively correlated with the level of education of the family,and according to the estimation results of the national different income level of CGSS2010,the families with higher income level are more willing to increase investment in Education.The influence of age on consumption expenditure is different between urban families and rural families,which is verified in CGSS2010 and CGSS2008.There is a significant negative correlation between the consumption expenditure of urban and rural residents and family population size.Thirdly,among the various types of consumption expenditures of urban and rural residents in China,the fundamental demand of food has always ranked first in the total demand,followed by the consumption of the entertainment,the medical care and the other three categories of consumption.Lastly,the overall demand of consumption expenditure such as clothing and accommodation is stable,and it does not fluctuate widely as income changes.In view of the conclusion,this paper puts forward some policy suggestions,such as increasing household income both in urban and rural in China,improving the medical security system and solving the problem of expensive medical services.