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An Empirical Study on the Spatial Correlation and Convergence of Residents’ Consumption

Author: LiQiHua
Tutor: XuQiang
School: Dongbei University of Finance
Course: Statistics
Keywords: urban and rural consumption spatial correlation regional convergence
CLC: F224
Type: Master's thesis
Year: 2011
Downloads: 102
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Abstract

Since reform and opening, China’s economy has maintained rapid growth, average annual growth rate remained at 10%, the highest miracle of world economic growth. However, the residential consumption as an important component of final demand has been showing a relatively weak state of development, residential consumption-GDP ratio continues to drop. Consumption as an important part of social reproduction is the driving force to guarantee the national economy operation orderly, which also is the key to achieve a virtuous cycle of social reproduction. To this end, the issue of consumer has become hot issues to attract a large number of domestic and foreign scholars to study on. Current empirical research on consumer issues mainly from two aspects to analysis consumption level and consumption structure. From the point of research methods, the issue in the study of consumer spending with little regard for the spatial heterogeneity of factors. From the point of research contents, there is little research from the perspective of convergence of consumer issues. However, territory is vast in China, the regional economic characteristics various in different regions. There are differences between regions in resource endowments, industrial structure, knowledge, innovation, technology and so on. Spatial heterogeneity between regions is very clear. The spatial effect to urban and rural residents’ consumer behavior cannot be ignored.Use the spatial data analysis techniques to measurement urban and rural consumer spatial correlation and spatial distribution pattern. Quantitative analysis of China’s urban and rural residents’ consumption whether there was a significant spatial correlation and spatial distribution pattern. On the base of the empirical results which show that the existence of urban and rural residents’ consumption and the existence of a significant spatial correlation of certain spatial aggregation model presented, use the spatial econometric model to analysis the convergence of urban and rural consumer. Therefore, the study on the issues of spatial correlation and regional convergence of consumer levels has a special significance and practical value, which contribute to understanding the current distribution and improvement of urban and rural residents’ welfare, understanding regional differences in urban and rural residents’consumption behavior characteristics in China, formulating the consumer policy for regional economic coordinated development, promoting China’s economic long-term, healthy and stable development and so on.Based on the previous studies, we use method of Spatial Correlation Analysis to analyze the spatial correlation and spatial aggregation patterns by learning from the excellent research and experience, thus reveal space preferences of urban and rural consumer, and tried to explain the reasons for space preferences of urban and rural consumer. On the basis of the conclusion that spatial correlation of urban and rural household consumer increased significantly year by year and exist a certain space-related spatial aggregation model which proved by the empirical analysis. Then use the spatial econometric models to explore urban and rural residents’ all kinds of consumer spending absoluteβconvergence, conditionalβconvergence. The results show that the existence of urban and rural household consumer spatial correlation which increased significantly year by year and showed a certain degree of spatial aggregation features. Absoluteβconvergence of urban and rural residents’ consumption in China is not obvious. After the introduction of control variables per capita income in urban resident consumer model, conditionβconvergences exist significantly. After the introduction of control variables per capita income and dependency ratio in rural resident consumer model, conditionβconvergences also exist significantly. We also found the gap between urban and rural residents consumption in the eastern and western of China widened gradually.Chapter 1 is the introductory section, which presents the research background, research meaning, research ideas, content, of the passage, the innovations of the article on the regional convergence.Chapter 2 is Introduction the development of spatial econometrics. Introduce the development of spatial econometrics course, and describe spatial econometric model. Chapter 3 is spatial correlation analysis on urban and rural consumer. Use the analysis of spatial association to study the spatial correlation and spatial distribution of urban and rural residents’ consumption and various types of consumer, and thus reveal areas of urban and rural consumer space preferences, and attempts to explain the reasons for preferences.Chapter 4 is convergence analysis on urban and rural consumption. Based on the evidence which that consumption of urban and rural residents have significant spatial correlation, further analysis its absolute and conditional convergence.Chapter 5 is conclusion and outlook. First summarize the research content and put forward appropriate policy recommendation, then prospect on this research work.This independent work and innovation mainly in the following two aspects:(1) Innovation in the content of the research. Study on the convergence of urban and rural consumer issues. Base on the conclusion which show that exists of the significant spatial correlation of urban and rural residents, then further analysis of its absolute and conditional convergence.and finding out whether the urban and rural residents in regional differences have different characteristics. (2) Innovation in research methods. Use the space measurement methods to study urban and rural consumer issues. In this paper, using the spatial econometric methods to investigate space-related and regional convergence of various types of urban and rural residents’ consumption, and thus reveals the spatial area of urban and rural consumer preferences, and to ascertain whether the allocation of urban and rural residents improved welfare.

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