The Research On The Regional Difference Of The Affect Of Financial Social Security On Household Consumption

Hunan Province is in the process of rapid urbanization and industrialization.With unique location characteristics and economic policies,there is obvious regional imbalance of economic development in Hunan Province,as well as the income and consumption level of residents in Hunan Province.As government's important means for income redistribution,financial social security expenditure should have played a role of regulating residents' income as well as promoting social equity.However,as a result of the imbalance of local financial strength,it is difficult for social security to play its function well,and even more widen the income and consumption gap between regions.This vicious circle will not only block the long-term economic growth of Hunan Province,but also intensify social contradictions and jeopardize social stability.This paper combines this three problems together,which are financial social security financial expenditure,household consumption and regional differences.Moreover,the scope of the study was narrowed down to Hunan Province,making the research conclusions more precise and accurate.Aiming to solve the problem of regional gap of residents' living standards,this paper starts from the economic agglomeration of Hunan Province.Firstly,I analyzed the different economic development level of the four zones of Hunan Province,as well as their different local financial strengths,financial social security expenditures.The analysis shows that there are four economic zones in Hunan Province.Secondly,using the methods of coefficient of variation,and Theil Index,I find how the regional difference trends run from 2008 to 2016,in the range of financial social security expenditure,residents' consumption as well as their Intra-group and inter-group differences.Thirdly,four panel data models were established to analyze the impact of financial social security expenditures on household consumption expenditures in various cities or in Hunan Province.Based on the significance of variables' coefficients,the hypothesis that the effects of financial social security expenditures on residents' consumption are varied in different area is verified.Finally,the paper proposed some advices to improve the efficiency of financial social security expenditure,expecting to balance social security resource between areas.The ultimate purpose is to narrow the income and consumption gap of residents,and to realize balanced economic growth of HunanProvince.