Empirical Study of China's Rural Consumption Function from the Perspective of Balancing Urban and Rural Development

From the perspective of balancing urban and rural development, this article researches the factors influencing the consumption level of rural residents in China. I select the relevant data concerning per capita net income of rural households and annual per capita consumer spending of rural residents for living in the period 1985-2008, establish the regression model of per capita net income of rural households and per capita consumer spending of rural residents for living, and conduct regression analysis and error correction model test using the measurement software. The analysis results show that there is not only long-term equilibrium relationship between rural residents' current consumption and rural residents' current income, between rural residents' consumption in lag period 1 and rural residents' income in lag period 1, but also short-term equilibrium relationship; current income is the main reason for determining the current consumption). Corresponding proposals are put forward to promote the level of rural consumption in China as follows: propel agricultural modernization; actively develop specialized cooperative organizations of rural residents; improve rural land transfer mechanism; promote the level of public services in rural areas; accelerate the transfer of rural surplus labor.

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Journal Article
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Asian Agricultural Research, Volume 04, Issue 03
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 Record created 2017-04-01, last modified 2018-01-17

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