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China's urban residents' income gap analysis of the impact on consumer demand

Author: HePing
Tutor: ZhuZeShan
School: Southwestern University
Course: Political Economics
Keywords: Income gap Propensity to consume Consumer demand
CLC: F124
Type: Master's thesis
Year: 2011
Downloads: 209
Quote: 0
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Abstract


Since reform and opening , the total population 30% -40 % of the income of urban households in the increasing and increasingly diverse sources of support material conditions , its spending power of China's rapid economic expansion has been the main drivers of growth . From the development of foreign experience, more than 1000 U.S. dollars per capita GDP , the economy will enter a new stage of development , social consumption structure will develop and enjoyment upgrades. China's urban residents per capita GDP had more than $ 1,000. Upgrade of consumption structure , will drive investment structure and industrial structure changes, the economy continued to grow rapidly to become the most reliable support. In addition, the service will also usher in a turning point of accelerated development , China 's economy will therefore moving to a higher form . In this case, the study of urban residents' consumption and income, is very meaningful thing. Households and individuals as a basic form of organization of social and economic unit, it is the starting point and destination of macroeconomic performance . Household consumer behavior, consumer decision-making , the formation of consumer demand, the market determines the well-being ; household income levels and demand structure on the industrial structure and product mix has the ultimate effect , although from a static and short-term perspective, the industrial structure determines the consumption structure ; However, dynamic and long-term perspective, consumption structure determines the industrial structure. Therefore, the consumption behavior of households and their consumption structure determines the macroeconomic investment structure , industrial structure, product structure. Currently living in urban households overall well-off from the well-off to enter the social environment, economic aggregate household economy of scale has become with the government, enterprises comparable national economy can not be ignored important part , especially in households consumer demand as a social major component of aggregate demand , determine the total supply and total demand gap changes affecting economic growth and one of the main variables of economic fluctuations . Based on this background , this paper focuses in-depth study of China's urban residents income gap , and the impact on consumption of this income gap is an important theoretical and practical significance of the issue.

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