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Research of the Restraining Factors and the Countermeasures of Extending Consumer Domestic Demand in China

Author: NiuXiaoMing
Tutor: FanGuoQing
School: Northeastern University
Course: Marxism in China
Keywords: Consumption demand Insufficient consumption Economic increase
CLC: F126.1
Type: Master's thesis
Year: 2009
Downloads: 175
Quote: 0
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Abstract


Since reform and opening-up 30 years ago, our economy had obtained an achievement high speed development. Yearly growth of GDP is upon 9.7%,3 times higher than the other developed countries in the world at the same period. China has ranked the third in the world in terms of the size of its economy. But a long term problem exists in the economic development that is unbalance among investment demand, consumption demand and export demand. But economic development in our country depends on investment demand and export too much. But economic development speed slow down after economic crisis. Although China has a comparative prefect and absolute economy system, but insufficient demand and dependence economy also exists. The government made a decision of expanding domestic demand in 9th Nov.2009 to respond the drop of domestic demand.Domestic demand is shortened form of domestic consumption demand of a country. Domestic demand is classified investment demand and consumption demand. The situation of our country is that investment demand is held in esteem and consumption is made light of. The author aims at this situation and then researches the restricting factors deeply. Countermeasures and suggestions are given in the article.Firstly, the author analyses relative literatures and concludes the ideas of scholar in our country; secondly, the author points out the influence of economic crisis on economic development、the economic status in China and the existing problems. Reasons of problems are also pointed out:salaries proportion of laborer is too low in the first distribution; purchasing power of low-income populations and unsound social security system are restricted by the income distribution gap growth; impeded development of the third industry and the high house price restrain the other consumption of inhabitants; Thirdly, the author gives countermeasures:adjusting distribution proportion; increasing salaries of laborer; adjusting distribution relations; perfecting social security system; enlarging employment and then developing more employments; adjusting house price reasonably and finally the author concludes the whole article.There are five parts in the article:introduction; economic situation in the world and the necessity of expanding the domestic demand; status of consumption and the reason; countermeasures of expanding consumer spending and the conclusion.

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CLC: > Economic > The world economic profiles,economic history,economic geography > China's economy > People's living conditions > People's consumption level,the structure
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