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Study on the Reasons and Countermeasures for China’s Consumption Rate Low Hovering

Author: WangDongFeng
Tutor: WangYanJie
School: Hebei University
Course: Finance
Keywords: consumption rate household consumption rate household income income distribution
CLC: F124
Type: Master's thesis
Year: 2008
Downloads: 39
Quote: 1
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Abstract


Consumption rate is an important basic indicator to reflect economic structure and the status of domestic consumer demand. With China’s consumption rate low hovering recent years and the resulting problems, Chinese government as well as the theoretical circles has shown great concerns about it. Taking this abnormal phenomenon as a cutting-in point, the author makes an analysis of the cause of it on the basis of reviewing the fluctuation of domestic consumption rate and accordingly comes up with some countermeasures. First, through the comparison of current rate with historical and international data, especially with "standard configuration", the author reaches a conclusion that China’s consumption rate is below the normal level, which is mainly caused by the low household consumption rate. Second, an analysis of the causation is given from three perspectives:income factor, income distribution factor and some environmental factors, and it comes to a conclusion that the main reasons for it are the household low income, China’s irrational income distribution structure and the big income gap and some environmental factors. Then the adverse effects of China’s economy caused by China’s low hovering consumption rate are analyzed. Finally, based on the China’s low hovering consumption rate and the reasons, corresponding practical policies are suggested to improve China’s current consumption rate properly.

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CLC: > Economic > The world economic profiles,economic history,economic geography > China's economy > Economic construction and development
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