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Research on the Rural Residents’ Income Problems in Hebei Province on the Background of Expanding Domestic Demand

Author: WangCongCong
Tutor: WangXiuFang
School: Agricultural University of Hebei
Course: Regional Economics
Keywords: the peasants’ household income and spending associated relationship rural demand the canonical correlation analysis the grey relational analysis
CLC: F224
Type: Master's thesis
Year: 2011
Downloads: 107
Quote: 1
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Expanding domestic demand is the long-term strategy and the fundamental footing guidelines of economic development in our country. And the key to expanding domestic demand is in the rural areas. Rural residents wears the dual identity of producers and consumers, their household spending constitutes the main component of rural demand. Therefore, it is necessary to expand the peasants’ household spending levels in order to expand rural demand. The development practice of China’s rural economy indicates that, the slow growth of peasants’ income is the most primary cause to restrict their household spending, so raising the peasants’ incomes is the basic way to expand the peasants’ household spending, then to expand rural demand. Hebei Province is a big agricultural province in China, the slow growth of peasants’ income and the rural demand shortage of has restricted seriously its rural economic development and the raise of peasants’ incomes. Therefore, it is necessary to study the associated relationship between peasants’ household income structure and household spending structure, to find the major source of income which influences the peasants’ household spending, and their subjective and objective influence factors. This research has significant theoretical realistic significance to create conditions of raising the peasants’ incomes, promote the environments of peasants’ household spending, increased rural demand and rapid the development of national economy.This paper took used of progression analysis method to research on three levels: The first level, on basic of theoretical overview, using economic yearbook data Hebei Province, this paper described the development and changes the peasants’ household income and spending in 2000-2009 in Hebei Province, grasped the main source of income、the main spending and their constitute of the rural residents in near 10 years. The second level, this paper analyzed the relationship between rural residents’ income and household spending in Hebei Province by empirical method. First, it verified the long-term stable equilibrium relationship between rural residents’ income and household spending in Hebei Province by co-integration tests; then it used the canonical correlation method to analyze the associated relationship between peasants’ household income structure and household spending structure in Hebei Province. Research results show that: first, the relationship between rural residents’ income and household spending in Hebei Province embodied in the correlations between rural residents’ salary income, household business income and living consumer spending. It mines that, the peasants’ salary income and household business income are highly positively correlated to the peasants’ life consumer spending. And they both have multiplier effects on living consumer spending. Second, Property and metastasis income is highly positive correlated to the property and metastasis spending and living consumer spending, property and metastasis income has multiplier effects on living consumer spendingThe third level, this paper used for reference to the existing researches of domestic and foreign scholars, set up separately influence factors of each constitutional project according to the different peasants’ household income; Then, this paper used the grey relational method analyzed respectively the relationships between influence factors and the each income project (mainly refers to the peasants’ salary income, household business income and property income). The empirical results show that: the third industry development level in Hebei Province is highest correlated to peasants’ salary income in 2006-2009. Other factors orderly are urbanization rate、rural industrialization rate、peasants’ cultural level and rural fixed asset investment level; The association degrees of Planting development scale to peasants’ household business income is the highest, secondly are the agricultural production、urbanization rate and agricultural production income; Cultivated land area per capita is highest correlated to peasants’ property income in Hebei Province. The association degrees of other factors are small.Finally, based on the main influence factors of incomes, this paper respectively put forward the countermeasures to increase peasants’ income and expand rural demand on the three views: promoting rural residents’ salary income, increased stably rural residents’ households business income and expanding rural residents’ property income actively.

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