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Study on the Relationship between the Government Expenditure and Residents Consumption of Chongqing

Author: XieWenLin
Tutor: ZhuZhiYong
School: Southwestern University
Course: Political Economics
Keywords: Expenditure The structure of fiscal expenditure Household consumption
CLC: F812.45;F126
Type: Master's thesis
Year: 2011
Downloads: 105
Quote: 0
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Abstract


Since the reform and opening up, China's final consumption rate has been low and declining, rapid and sustainable development of the Chinese economy has been severely restricted. Chongqing, as the country's fourth municipality directly under the Central Government continued economic development and people's living standard has been greatly improved, and the country but also facing the final consumption rate has continued to reduce the situation. Consumption as the main residents of final consumption, although greatly enhance the total, urban residents per capita consumption growth from 4937.75 yuan Territory early to 13,507.3 yuan in 2009, and while the per capita consumption of rural residents grew to 2138.3 yuan from the Territory early 2009 years of 5600.68 yuan. But the view from the relative amount of urban residents and rural residents per capita consumption tendency and consumer rate are showing a downward trend. , The average consumption of urban residents tend decades declined 10%, while rural residents average propensity to consume 12% consumption rate decreased by 15%. Consumption as an important part of macroeconomic and should play an important role in boosting the economy Pulling effect of the current level of final consumption rate is too low, insufficient consumption affect not only on the economy is too small, it will affect the healthy and stable development of the economy as a whole, thereby affecting the improvement of living standards of the people and society as a whole harmony development. In this regard, whether in the country or in Chongqing, have implemented a proactive fiscal policy this intervention Territory from 1997 to 2009, the city's fiscal expenditure growth rate is much higher than the city's GDP growth rate . Some experts believe that the growth of government expenditure to improve the level of public goods and services, also stepped up efforts to investment in infrastructure, this will stimulate people's consumption to some extent. But at the same time, there are a lot of experts and scholars on fiscal spending policies affect consumer also conducted in-depth research to come to a contrary opinion. This paper attempts to relevant statistical data on the basis of existing research, combined with scientific induction sorting, analyzing the relationship of the city's fiscal spending and consumer. Starting from the structure of fiscal expenditure, the four projects selected infrastructure spending, education spending, research and development expenditures and administrative expenses, as a guide to economic theory to establish the regression model, analyzed in addition to the administrative expenditure on consumer crowding In addition, the remaining three play a facilitating role in household consumption. According to this analysis, the city should be under the general idea of ??fiscal policy to promote the consumption of urban and rural residents in Chongqing, formulated to optimize the structure of fiscal expenditure, increase people's livelihood and investment, and increase the income level, to expand fiscal spending policies of the residents consumption.

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