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The Contribution Analysis of Rural Residents’ Consumption to Economic Growth in China

Author: ZhaoDongHong
Tutor: ZhangGuiWen
School: Liaoning University
Course: Political Economics
Keywords: China Rural Residents’consumption Economic Growth Contribution Analysis
CLC: F124;F224
Type: Master's thesis
Year: 2011
Downloads: 82
Quote: 0
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Abstract


Investment, consumption and export trade are“Troika”which draw a country’s economy growing. However, the effects of the Troika are not balanced. Since economic reform and opening up for more than 30 years of rapid growth has been mainly driven by investment, and consumption was in a weak state. Compared with the investment and exportation, the expansion of consumer demand is the original power for economic growth, and is of great significance to maintain good and fast economic development. Especially since 2008, the global financial crisis leads the expansion of domestic demand and the change from investment and export-led economic growth to domestic demand-led economic growth imminently. The Government have also issued a series of policies aimed at expanding the domestic demand. By the end of 2009, the proportion of the rural population in the mainland population had reached 53.41%, while its consumption expenditure just occupied 23.8 percent of the total consumer expending. This shows the huge potential of the consumer market in rural areas. So, promoting the consumption of rural residents is the key to expanding the domestic demand.Based on the above background, this article has systematically studied the contribution of the rural residents’consumption to economic growth. Firstly, this paper has fully demonstrated the background and the significance of topic selection, explained the research trends of the domestic and foreign to grasp the leading edge, analyzed the action mechanism of rural residents’consumption to economic growth to settle theoretical foundation. Secondly, this article has studied the present condition, factors and restriction reason of the rural residents’consumption. It has used the regression analysis to verify the positive correlation of the farmer expense and GDP, and used the Input-Output analysis to measure the contribution of the farmer expense to National economic sectors, and compared with urban’s effect. Lastly, in the foundation of above, the paper has proposed the measure which will promote consumption to drive sustained economic growth.This paper carries out empirical analysis of the rural residents’consumption to economic growth combined with empirical analysis and normative analysis, qualitative analysis and quantitative analysis, and comparative research methods. This paper want to find the path of promoting the rural residents’consumption, expanding the domestic demand and stimulating economic growth through the analysis .

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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